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Key gauges end in green as Fed rate hike concerns ease
Sep-04-2026

Snapping four-day losing streak, Indian equity benchmarks ended on positive note on Friday following gains in global stock markets as concerns over an imminent U.S. Fed rate hike eased. However, gains remained capped due to foreign fund outflows and persistent geopolitical tensions in the Middle East. 

The BSE Sensex ended with gains of around half percent supported by gains in select heavyweight stocks from sectors such Metal, Telecom and Basic Materials. Further, the Nifty 50 erased most of its initial gains and ended flat with positive bias as traders stayed on the sidelines ahead of the important US non-farm payroll and unemployment data. 

Some of the important factors in trade:

Preferential tariff terms key to finalising India-US trade pact: With an aim to fast-track the bilateral trade pact process, Commerce and Industry Minister Piyush Goyal has said details of the Bilateral Trade Agreement (BTA) with the US will be announced once Washington offers India preferential terms over its competitors. 

India's banking system liquidity surplus surges to record Rs 9.71 lakh crore as of September 2: The Reserve Bank of India's (RBI) data showed that India’s banking system liquidity surplus has rose to a record high of Rs 9.71 lakh crore as on September 2, 2026, surpassing the previous peak of Rs 9.21 lakh crore recorded in September 5, 2021. The record surplus was primarily boosted by inflows from the RBI's FCNR (B) scheme. 

India, South Africa aim to expand economic ties, address trade imbalance: Aiming to deepen India-South Africa bilateral ties, South African BRICS Business Council (SABBC) is set to visit New Delhi to explore opportunities to expand economic ties with India and address the trade imbalance between the two countries.

Automotive industry continues to be key driver of India’s economic growth: Society of Indian Automobile Manufacturers (SIAM) President Shailesh Chandra said India’s automotive industry continues to be a key driver of economic growth, contributing more than Rs 22.75 lakh crore to the economy. 

Global front: European markets were trading mostly in red as traders awaited U.S. nonfarm payrolls data for clues on Federal Reserve's interest rate path. Asian markets settled mostly higher as dovish comments from Federal Reserve Governor Christopher Waller prompted traders to scale back expectations of a Federal Reserve rate increase this month. 

Finally, the BSE Sensex rose 362.57 points or 0.48% to 76,515.43 and the CNX Nifty was up by 24.25 points or 0.10% to 23,897.70.  

The BSE Sensex touched high and low of 76,883.14 and 76,515.43, respectively. There were 20 stocks advancing against 10 stocks declining on the index.            

The top gaining sectoral indices on the BSE were Metal up by 1.42%, Telecom up by 1.39%, Basic Materials up by 0.61%, Utilities up by 0.50% and Energy up by 0.26%, while Capital Goods down by 0.66%, Realty down by 0.66%, Healthcare down by 0.50%, TECK down by 0.30% and Auto down by 0.18% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 2.91%, Reliance Industries up by 1.61%, Bajaj Finance up by 1.47%, Trent up by 1.34% and Adani Ports &SEZ up by 1.33%. On the flip side, Bharti Airtel down by 1.24%, HCL Technologies down by 1.24%, Eternal down by 1.09%, Asian Paints down by 0.48% and TCS down by 0.48% were the top losers.

Meanwhile, Reserve Bank of India's (RBI) data showed that India’s banking system liquidity surplus has rose to a record high of Rs 9.71 lakh crore as on September 2, 2026, surpassing the previous peak of Rs 9.21 lakh crore recorded in September 5, 2021. The record surplus was primarily boosted by inflows from the RBI's FCNR (B) scheme. 

According to the data, the RBI's special forex measures mobilised $136.38 billion by August 31, including $127.23 billion through FCNR(B) deposits, $5.26 billion through OFCBs and $3.89 billion via ECBs. The FCNR(B) window was closed a month early on August 31 due to the strong response, while the ECB/OFCB facility remains open till December 31 and inflows through these routes are expected to pick up. 

The mobilisation brought foreign currency into the banking system, while the subsequent swaps with the RBI provided rupee liquidity to banks. Besides FCNR(B) inflows, month-end government expenditure, including payments towards salaries and pensions, also added to liquidity in the banking system.

CNX Nifty touched high and low of 24,005.75 and 23,895.85, respectively. There were 23 stocks advancing against 27 stocks declining on the index. 

The top gainers on Nifty were SBI Life Insurance up by 3.50%, Tata Steel up by 2.49%, HDFC Life Insurance up by 2.42%, Reliance Industries up by 1.50% and Trent up by 1.33%. On the flip side, HCL Technologies down by 1.94%, Bharti Airtel down by 1.55%, Maruti Suzuki India down by 1.27%, Bajaj Finserv down by 1.11% and Max Healthcare Institute down by 1.02% were the top losers. 

European markets were trading mostly in red; UK’s FTSE 100 decreased 6.64 points or 0.06% to 10,824.88 and France’s CAC fell 16 points or 0.19% to 8,270.40, while Germany’s DAX gained 64.38 points or 0.25% to 26,067.70.

Asian markets settled mostly higher on Friday tracking Wall Street's overnight gains driven by retreating Treasury yields after Federal Reserve Governor Christopher Waller stated he is leaning toward keeping interest rates steady at the US central bank's policy meeting this month if the next batch of inflation data shows price pressures are continuing to moderate. A slight decline in global crude prices also kept the market sentiments upbeat, though the Brent crude oil prices continued to trade above $95 a barrel mark due to renewed US-Iran hostilities and elevated concerns over supply disruptions. Further, investors awaited the release of August US jobs report for further cues on the Fed's policy outlook. Meanwhile, the Bank of Japan is widely expected to consider a 0.25 percentage point rate increase to 1.25% at its upcoming policy meeting on September 17-18 to contain inflationary pressures.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,930.12

-11.97

-0.30

Hang Seng

25,650.87

437.56

1.74

Jakarta Composite

6,636.48

-31.41

-0.47

KLSE Composite

1,708.10

-7.03

-0.41

Nikkei 225

65,020.94

806.46

1.26

Straits Times

5,801.96

54.25

0.94

KOSPI Composite

6,687.21

107.73

1.64

Taiwan Weighted

46,551.13

693.47

1.51
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