Sensex & Nifty Snap Losing Streak As Fed Fears Ease

Market Performance Overview

Indian equity benchmarks snapped a four-day losing streak on Friday, finishing in positive territory as global market sentiment improved. Investors reacted to easing concerns regarding a potential U.S. Federal Reserve rate hike, though domestic gains faced pressure from foreign fund outflows and ongoing geopolitical tensions in the Middle East.

• BSE Sensex: 76,515.43, up 362.57 points or 0.48%.
• CNX Nifty: 23,897.70, up 24.25 points or 0.10%.

The BSE Sensex found support through gains in heavyweight stocks within the Metal, Telecom, and Basic Materials sectors. Conversely, the Nifty 50 erased most of its initial gains to end with a flat but positive bias as market participants remained cautious ahead of upcoming U.S. non-farm payroll and unemployment data.

Key Economic Indicators and Updates

Several major developments across the banking and trade sectors shaped the broader economic landscape during the session.

• Liquidity Surplus: India’s banking system liquidity reached a record Rs 9.71 lakh crore as of September 2, 2026, driven by inflows from the RBI’s FCNR (B) scheme.
• Trade Negotiations: Commerce and Industry Minister Piyush Goyal stated that a bilateral trade agreement with the U.S. will be finalized once Washington offers preferential terms.
• Economic Contribution: Society of Indian Automobile Manufacturers President Shailesh Chandra noted that the automotive industry contributes over Rs 22.75 lakh crore to the national economy.
• Bilateral Relations: The South African BRICS Business Council is scheduled to visit New Delhi to discuss expanding economic ties and correcting trade imbalances.

Global Market Context

International market movements provided a mixed backdrop for domestic trading, with Asian markets generally showing resilience while European markets struggled. Asian indices settled mostly higher after Federal Reserve Governor Christopher Waller provided dovish commentary, leading traders to scale back expectations for a rate increase this month.

European markets traded mostly in the red as investors maintained a wait-and-see approach regarding the U.S. non-farm payrolls data. This report is expected to provide further clarity on the Federal Reserve’s future interest rate path.