Indices trade in positive terrain; PSU Bank shares jump

The domestic equity benchmarks pared most of their early gains and traded with minor gains in mid-morning trade as investors digested a positive economic data. Sentiment was supported by robust inflows through Foreign Currency Non-Resident Bank (FCNRB) deposits, which reportedly exceeded $120 billion. The Nifty remained in positive territory but traded below the 24,950 mark as investors adopted a cautious approach following the recent market volatility.

PSU Bank shares witnessed buying demand for second consecutive trading sessions.

At 11:25 IST, the barometer index, the S&P BSE Sensex advanced 140.53 points or 0.18% to 76,710.88. The Nifty 50 index rose 41.80 points or 0.17% to 23,949.40.

In the broader market, the BSE 150 MidCap Index rose 0.20% and the BSE 250 SmallCap Index added 0.89%.

The market breadth was positive. On the BSE, 2,506 shares rose and 1,182 shares fell. A total of 261 shares were unchanged.

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.

The inflows included $127.23 billion through Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, while overseas foreign currency borrowings (OFCBs) contributed $5.26 billion and external commercial borrowings (ECBs) accounted for $3.89 billion.

Buzzing Index:

The Nifty PSU Bank index advanced 1.25% to 8,617.80. The index rose 1.32% in two consecutive trading sessions.

Bank of Maharashtra (up 4.98%), Punjab & Sind Bank (up 2.39%), Indian Bank (up 2.18%), UCO Bank (up 2.17%), Central Bank of India (up 1.65%), Union Bank of India (up 1.48%), Bank of India (up 1.42%), Canara Bank (up 1.15%), State Bank of India (up 1%) and Indian Overseas Bank (up 0.64%) surged.

Stock in Spotlight:

Welspun Corp rose 3.03% after a foreign brokerage initiated coverage on the company with a 'Buy' rating and a target price of Rs 3,250.

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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