Indices drift higher in early trade; breadth strong

The key equity benchmarks traded with moderate gains in early trade supported by a decline in crude oil prices and robust inflows through Foreign Currency Non-Resident Bank (FCNRB) deposits, which reportedly garnered over $120 billion. Continued buying by foreign institutional investors (FIIs) also helped improve investor sentiment. Following a challenging start to September, domestic equities are showing signs of stabilisation as investors assess global macroeconomic and geopolitical developments. The Nifty traded above 23,950 mark.

In addition to developments surrounding the US-Iran conflict and movements in crude oil and gold prices, market participants will closely track the upcoming quarterly earnings announcements of recently listed companies over the next few weeks. Investors are likely to assess these results for insights into operating performance, earnings visibility and demand trends.

Buying interest was seen in banking and realty stocks while IT, FMCG and consumer durables shares traded in negative territory.

At 09:25 IST, the barometer index, the S&P BSE Sensex advanced 159.29 points or 0.20% to 76,730.54. The Nifty 50 index jumped 53 points or 0.23% to 23,967.15.

In the broader market, the BSE 150 MidCap Index rose 0.07% and the BSE 250 SmallCap Index added 0.57%.

The market breadth was strong. On the BSE, 2,384 shares rose and 903 shares fell. A total of 205 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 6,688.37 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,812.98 crore in the Indian equity market on 2 September 2026, according to provisional data.

Economy:

The Reserve Bank of India (RBI) on Wednesday said forex inflows under its special USD-INR forex swap facility stood at $136.38 billion as of 31 August 2026, according to provisional data reported by authorised dealer banks.

Numbers to Track:

The yield on India's 10-year benchmark federal paper fell 0.39% to 6.945 compared with the previous session close of 6.972.

In the foreign exchange market, the rupee was higher against the dollar. The partially convertible rupee was hovering at 94.4150 compared with its close of 94.7300 during the previous trading session.

MCX Gold futures for 5 October 2026 settlement advanced 0.78% to Rs 1,53,592.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.17% to 99.43.

The United States 10-year bond yield fell 0.42% to 4.774.

In the commodities market, Brent crude for the November 2026 settlement declined 16 cents or 0.17% to $95.47 a barrel.

Stocks in Spotlight:

Hexaware Technologies declined 2.34%. The company has appointed Vivek Jetley as CEO-designate. He will join the company and assume the role of CEO on October 28, 2026. Srikrishna Ramakarthikeyan will step down as CEO and as a member of the Board of Directors, effective October 28, 2026. He will continue with the company as senior advisor to facilitate a smooth leadership transition.

Housing & Urban Development Corporation (HUDCO) added 3.01% after the company has signed a memorandum of understanding (MoU) with the Government of Bihar to provide financial assistance of up to Rs 25,000 crore over five years for the development of industrial infrastructure, including land acquisition for industrial park projects.

Global Markets:

Asian stocks rose on Thursday, tracking gains on Wall Street, as easing concerns over a prolonged US-Iran conflict helped lift risk appetite.

Brent crude eased after rising more than 8% over the previous three sessions, as US President Donald Trump indicated that renewed attacks on Iran were unlikely to continue for long. The easing in oil prices also helped global bond markets stabilise, with US Treasury yields retreating from recent multi-year highs. Investors, however, remain focused on the conflict and its impact on energy supplies.

Wall Street rebounded on Wednesday, with the Dow Jones Industrial Average rising 295.01 points, or 0.56%, to 53,061.89, while the S&P 500 gained 35.16 points, or 0.46%, to 7,666.63. The Nasdaq Composite advanced 118.05 points, or 0.45%, to 26,217.83. The recovery was supported by buying in technology and other recently weak stocks, although oil prices remained elevated amid the ongoing conflict.

The market focus has also shifted to US labour-market data. Private-sector hiring increased at a slower pace in August, while traders are watching Friday's nonfarm payrolls report for confirmation of whether labour-market weakness could influence the Fed's interest-rate decision. Markets are currently pricing roughly a 66% probability of a 25-basis-point rate hike in September.

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