GIFT Nifty hints at muted opening; rate cut hopes fuel rally on Wall Street

GIFT Nifty:

GIFT Nifty September 2025 futures were trading with a gain of 6.00 points (or 0.02%) in early trade, suggesting that the Nifty 50 could witness a muted opening today.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 2,169.35 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 3,014.30 crore in the Indian equity market on 08 September 2025, provisional data showed.

According to public data, FPIs have sold shares worth Rs 7,836.25 crore in the cash market in so far in September 2025. This follows their cash sales of shares worth Rs 46,902.92 crore in August 2025.

Global Markets:

Asian market traded mixed expectations of a U.S. rate cut as early as next week, even as political upheavals around

The Japanese market saw strong buying interest for second consecutive session after the country?s Prime Minister Shigeru Ishiba announced his resignation Sunday.

The rally is being fuelled by hopes that the next leader from the ruling Liberal Democratic Party (LDP) could unleash a new wave of fiscal stimulus to bolster the Japanese economy.

Overnight stateside, the three major averages closed higher. The Nasdaq Composite closed at a record high as investors geared up for a data-heavy week that includes two closely watched readings on inflation.

The tech-heavy Nasdaq finished up 0.45% at 21,798.70, a record high after hitting a new all-time intraday high in the session. The S&P 500, meanwhile, settled up 0.21% at 6,495.15, while the Dow Jones Industrial Average rose 114.09 points, or 0.25%, to close at 45,514.95.

Breathing new life into the equities rally were expectations that the Federal Reserve would ease rates when it meets next week, following Friday's dismal U.S. jobs report.

Domestic Market:

The key equity benchmarks closed with minor gains on Monday, supported by recent GST reforms and positive economic cues, though late profit-booking capped the upside.

The Nifty opened firm above the 24,800 mark and moved higher through most of the session before sharp selling in the final hour trimmed advances. The index eventually settled above the 24,750 level. Sectorally, auto stocks saw strong buying interest, driven by expectations of a demand recovery post-GST cuts. On the other hand, IT stocks remained under pressure amid speculation over possible restrictions on IT services exports.

Investor sentiment was buoyed by GST rate cuts, dovish signals from the US Federal Reserve after weak jobs data, and easing geopolitical risks. Optimism around India?s domestic economic outlook also supported select sectors. However, persistent foreign institutional selling restricted the rally.

The S&P BSE Sensex added 76.54 points or 0.54% to 80,787.30. The Nifty 50 index rose 32.15 points or 0.13% to 24,773.15.

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