Sensex, Nifty rebound as easing US yields, Asian gains boost sentiment

The key equity benchmarks ended with modest gains on Friday, snapping a four-session losing streak. The rebound was supported by positive Asian cues and easing US Treasury yields, as expectations of an imminent Federal Reserve rate hike moderated. The Nifty settled near the 23,900 level, while the Sensex also closed above 76,500 mark. Gains were led by metal and private banking stocks.

Investors remained cautious ahead of the US nonfarm payrolls report due later on Friday. The data is expected to provide fresh clues on the Federal Reserve's interest-rate path. Market participants will also track upcoming US inflation data for further direction.

The S&P BSE Sensex jumped 362.57 points or 0.48% to 76,515.43. The Nifty 50 index added 24.25 points or 0.10% to 23,897.70. In the past four sessions, the Sensex and the Nifty declined 1.44% and 1.25%, respectively.

Tata Steel (up 2.49%), Reliance Industries (up 1.50%) and HDFC Bank (up 0.77%) boosted the Nifty higher today.

In the broader market, the BSE 150 MidCap Index shed 0.01% and the BSE 250 SmallCap Index rose 0.24%.

The market breadth was positive. On the NSE, 2016 shares rose and 1517 shares fell. A total of 115 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tumbled 6.50% to 10.60.

Economy:

SEBI said it will review the methodology for determining settlement prices of derivative contracts on expiry following feedback received after the introduction of the Closing Auction Session (CAS) in the equity cash segment from 3 August 2026. The regulator said the CAS-determined closing price also serves as the basis for settling derivative contracts on expiry. After monitoring the mechanism during its first month and receiving feedback from stock exchanges, brokers, traders, mutual funds, FPIs and other market participants, SEBI said it may propose changes to the settlement-price methodology and plans to issue a consultation paper in about a week.

Numbers to Track:

In the commodities market, Brent crude for the November 2026 settlement declined 34 cents or 0.36% to $95.18 a barrel.

The yield on India's 10-year benchmark federal paper shed 0.19% to 6.978 compared with the previous session close of 6.965.

In the foreign exchange market, the rupee was higher against the dollar. The partially convertible rupee was hovering at 94.4450 compared with its close of 94.5100 during the previous trading session.

MCX Gold futures for 5 October 2026 settlement fell 0.50% to Rs 1,56,837.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.19% to 99.10.

The United States 10-year bond yield declined 0.10% to 4.757.

Global Market:

Most European indices traded lower on Friday, 4 September 2026, while Asian markets ended mostly higher. The moves followed a strong rally on Wall Street, where easing US Treasury yields and softer expectations of a September Federal Reserve rate hike lifted investor sentiment.

Chinese artificial intelligence stocks rose on Friday after OpenAI launched its latest model, GPT-6 Astra, which investors viewed as a positive read-through for the country's AI developers. MiniMax gained 6.5%, Baidu 4.6%, Kuaishou Technology 4.2%, JD.com 4.1% and Xiaomi 3.9%, while Z.AI edged higher. The gains extended a recent rally in Chinese AI stocks as investors assessed the commercial potential of faster advances in large language models and more autonomous AI-agent services.

US equities rallied sharply on Thursday, with the Dow Jones Industrial Average rising 1.18% to 53,686.11, the S&P 500 gaining 1.06% to 7,747.71 and the Nasdaq Composite advancing 1.40% to 26,584.06. Technology stocks led the gains, with Microsoft, Meta Platforms and Nvidia among the major advancers. Snowflake surged 16.6% after its results, lifting the broader software segment.

Market sentiment improved after Federal Reserve Governor Christopher Waller said he would support keeping the federal funds rate unchanged if upcoming data confirms that inflationary pressures are easing. Following his comments, the probability of a September rate hike fell to around 50% from 63.2% on Wednesday, according to CME FedWatch. The US 10-year Treasury yield also retreated for a second consecutive session.

Attention has now shifted to the US nonfarm payrolls report due later on Friday. The data could influence expectations for the Fed's September 15-16 policy meeting.

New Listings:

Shares of ESDS Software Solution ended at Rs 895.55 on the BSE, representing a premium of 108.75% as compared with the issue price of Rs 429.

The stock debuted at Rs 746.30 on the BSE, a premium of 73.96% over its issue price. The stock has hit a high of Rs 895.55 and a low of Rs 746.30. On the BSE, over 18.08 lakh shares of the company were traded in the counter.

Shares of Priority Jewels ended at Rs 236.45 on the BSE, representing a premium of 18.22% as compared with the issue price of Rs 200

The stock debuted at Rs 225.20 on the BSE, a premium of 12.6% over its issue price. The stock has hit a high of Rs 236.45 and a low of Rs 225.20. On the BSE, over 2.26 lakh shares of the company were traded in the counter.

Stocks in Spotlight:

Tata Chemicals fell 2.60% after media reports said Kenyan President William Ruto had ordered the company to stop operations in the country, raising concerns over its Magadi soda ash business. The reports said Ruto criticised Tata Chemicals Magadi Limited (TCML) over job creation and local value addition, while Kenya plans to bring in new investors for the Lake Magadi operations. The development follows a 28 July 2026 communication from Kenya's Ministry of Mining, Blue Economy and Maritime Affairs, which reportedly directed TCML to suspend mining operations and soda ash exports over regulatory and compliance concerns. Tata Chemicals, however, said on 4 September that TCML had submitted all required information and documentation to the ministry on 11 August and is fully compliant with regulatory requirements. The company said it is awaiting the ministry's review and further direction and remains committed to resolving the matter through the appropriate legal and regulatory channels.

Ultratech Cement advanced 1.18% after the company has launched the wires and cables business, Ultravolt, marking the Aditya Birla Group company?s fourth new business foray in three years. Backed by an investment of Rs 1,800 crore, Ultravolt is expected to become the second-largest player in the wires segment by capacity. The business aims to build a scaled national brand and rank among the top two players in the segment within five years.

Sterlite Technologies hit the upper circuit of 5% after the company announced a major capacity expansion at its existing manufacturing facility. The company plans to invest around Rs 3,000 crore in the expansion. The investment will be funded through internal accruals and/or debt. Sterlite Technologies plans to increase its installed manufacturing capacity by approximately 50%. The expansion is expected to be completed by the end of FY29.

Rail Vikas Nigam (RVNL) rose 1.52% after the company secured a Rs 405 crore project from East Coast Railway for execution of roadbed, bridges and allied works.

B.R.Goyal Infrastructure rallied 3.76% after the company announced that it has secured a toll collection contract from NHAI worth Rs 108.68 crore.

Shanthi Gears rallied 5.62% after the company?s board approved the appointment of Sai Krishna Alluri as chief financial officer (CFO), effective 3 September 2026. Separately, the board approved the appointment of Helena Susan as Head?Human Resources and designated her as senior management personnel (SMP).

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