By Our Business Correspondent
Domestic equity benchmarks staged a modest recovery on Friday, snapping a four-session losing streak, as easing US Treasury yields and firmer Asian markets improved investor sentiment. Gains were led by metal and private banking stocks, while heavyweight counters such as Tata Steel, Reliance Industries and HDFC Bank provided support to the benchmark indices.
The rebound, however, remained measured as investors stayed cautious ahead of the US nonfarm payrolls report due later in the day. The employment data is being closely watched for fresh indications on the direction of US monetary policy and the Federal Reserve’s approach to interest rates at its September meeting.
The S&P BSE Sensex advanced 362.57 points, or 0.48%, to close at 76,515.43, while the Nifty 50 gained 24.25 points, or 0.10%, to settle at 23,897.70. The recovery came after the benchmarks had declined sharply over the previous four sessions, during which the Sensex lost 1.44% and the Nifty fell 1.25%.
The market’s cautious tone reflected uncertainty over the global interest-rate outlook. Investors are also looking ahead to upcoming US inflation readings, which could influence expectations surrounding the Federal Reserve’s next policy move.
Among major Nifty constituents, Tata Steel emerged as one of the strongest contributors, rising 2.49%. Reliance Industries gained 1.50%, while HDFC Bank advanced 0.77%. Gains in metal and private banking stocks helped offset weakness elsewhere in the market.
Broader Market Remains Mixed
The broader market displayed a relatively balanced trend. The BSE 150 MidCap index slipped marginally by 0.01%, while the BSE 250 SmallCap index edged up 0.24%.
Market breadth on the National Stock Exchange remained positive, with 2,016 stocks advancing against 1,517 declines, while 115 stocks ended unchanged.
Volatility also eased significantly. The NSE India VIX, which measures market expectations of near-term volatility, declined 6.50% to 10.60. The fall in the volatility gauge indicated some moderation in immediate market nervousness, although investors continued to monitor global macroeconomic signals closely.
SEBI Reviews Derivatives Settlement Methodology
In a significant regulatory development, the Securities and Exchange Board of India (SEBI) said it would review the methodology used 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.
The CAS mechanism was introduced from August 3, 2026. Under the existing framework, the closing price determined through the auction session also serves as the basis for settling derivative contracts on expiry.
SEBI said it had monitored the mechanism during its first month and received feedback from stock exchanges, brokers, traders, mutual funds, foreign portfolio investors and other market participants.
Based on the feedback, the regulator may propose changes to the settlement-price methodology. SEBI is expected to issue a consultation paper on the matter in about a week, potentially opening the way for further discussion among market participants before any changes are finalised.
The review is significant because settlement prices play a critical role in determining the final value of derivative contracts and can influence trading behaviour around expiry sessions.
Rupee Strengthens; Crude and Gold Ease
In the commodities market, Brent crude futures for November 2026 delivery declined 34 cents, or 0.36%, to $95.18 a barrel. Elevated crude prices remain an important factor for Indian markets because of the country’s dependence on imported oil and the implications for inflation, the current account and corporate input costs.
The Indian rupee strengthened marginally against the US dollar. The partially convertible rupee was quoted at 94.4450 to the dollar, compared with its previous close of 94.5100.
India’s 10-year benchmark government bond yield, however, rose to 6.978% from 6.965%, contrary to the direction suggested by the original market note. The move represents an increase of about 1.3 basis points.
MCX gold futures for delivery on October 5, 2026, declined 0.50% to Rs 1,56,837.
The US Dollar Index, which measures the greenback against a basket of major currencies, rose 0.19% to 99.10. Meanwhile, the US 10-year Treasury yield declined 0.10% to 4.757%, extending its recent easing trend.
Asian Markets Gain, Europe Trades Lower
Global markets remained sensitive to developments in US monetary policy. Most Asian markets ended higher on Friday, while European indices traded mostly lower.
Wall Street had delivered a strong performance in the previous session, supported by falling US Treasury yields and changing expectations around the Federal Reserve’s September policy decision.
Chinese artificial intelligence stocks were among the notable gainers. The sector extended its recent rally as investors assessed the commercial potential of rapid advances in large language models and increasingly autonomous AI-agent services.
MiniMax rose 6.5%, Baidu gained 4.6%, Kuaishou Technology advanced 4.2%, JD.com climbed 4.1% and Xiaomi increased 3.9%, while Z.AI also moved higher.
US equities rallied sharply on Thursday. The Dow Jones Industrial Average rose 1.18% to 53,686.11, the S&P 500 gained 1.06% to 7,747.71 and the Nasdaq Composite advanced 1.40% to 26,584.06.
Technology stocks led the advance, with Microsoft, Meta Platforms and Nvidia among the major gainers. Snowflake surged 16.6% following its results, lifting sentiment across the broader software segment.
Fed Outlook in Focus
Market sentiment improved after Federal Reserve Governor Christopher Waller indicated that he would support keeping the federal funds rate unchanged if forthcoming economic data confirms that inflationary pressures are easing.
Following his comments, market-implied expectations for a September rate increase eased, with the probability falling to around 50% from 63.2% on Wednesday, according to CME FedWatch data cited in the market note.
The decline in the US 10-year Treasury yield for a second consecutive session further supported risk appetite.
Attention is now firmly focused on the US nonfarm payrolls report. The employment numbers could have a significant bearing on expectations for the Federal Reserve’s September 15-16 policy meeting. Investors will also assess forthcoming inflation data for confirmation of the underlying price trend.
ESDS Software Makes Strong Debut
New listings continued to attract investor interest. Shares of ESDS Software Solution ended at Rs 895.55 on the BSE, representing a gain of 108.75% over its issue price of Rs 429.
The stock made its debut at Rs 746.30, translating into a 73.96% premium over the issue price. During the session, it touched a high of Rs 895.55 and a low of Rs 746.30. More than 18.08 lakh shares changed hands on the BSE.
Shares of Priority Jewels also ended above their issue price. The stock closed at Rs 236.45, an 18.22% premium over the issue price of Rs 200. It opened at Rs 225.20, representing a 12.6% premium, and traded between a high of Rs 236.45 and a low of Rs 225.20. More than 2.26 lakh shares were traded on the BSE.
Stocks in Spotlight
Tata Chemicals declined 2.60% following media reports concerning its Kenyan operations. Reports said Kenyan President William Ruto had ordered action against Tata Chemicals Magadi Limited (TCML), raising concerns over its soda ash operations at Lake Magadi.
The reports indicated that Ruto had criticised the company over employment generation and local value addition, while Kenya is considering bringing in new investors for the Lake Magadi operations. The development follows a July 28 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 issues.
Tata Chemicals, however, said on September 4 that TCML had submitted all required information and documentation to the ministry on August 11 and remained compliant with regulatory requirements. The company said it was awaiting the ministry’s review and further direction and remained committed to resolving the matter through appropriate legal and regulatory channels.
UltraTech Cement gained 1.18% after launching its wires and cables business under the brand name Ultravolt. The new venture represents the Aditya Birla Group company’s fourth new business foray in three years. With a planned investment of Rs 1,800 crore, Ultravolt aims to become the second-largest player in the wires segment by capacity and build a national-scale brand within five years.
Sterlite Technologies hit the 5% upper circuit after announcing a major expansion of its existing manufacturing facility. The company plans to invest around Rs 3,000 crore, funded through internal accruals and/or debt, to increase installed manufacturing capacity by approximately 50%. The expansion is targeted for completion by the end of FY29.
Rail Vikas Nigam Ltd (RVNL) rose 1.52% after securing a Rs 405 crore project from East Coast Railway involving roadbed, bridge and allied works.
B.R. Goyal Infrastructure advanced 3.76% after securing a toll collection contract from the National Highways Authority of India worth Rs 108.68 crore.
Shanthi Gears rallied 5.62% after its board approved the appointment of Sai Krishna Alluri as Chief Financial Officer with effect from September 3, 2026. The board also approved the appointment of Helena Susan as Head-Human Resources and designated her as a senior management personnel.
Overall, Friday’s session marked a welcome pause in the recent market decline, but the modest gains suggested that investors were unwilling to make aggressive bets ahead of crucial US economic data. With crude oil prices still elevated, the rupee under pressure and global markets closely tracking the Federal Reserve’s policy outlook, near-term direction is likely to remain data-dependent.
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https://biznama.com/sensex-nifty-recovery-markets-snap-four-session-losing-streak