Sensex and Nifty React Cautiously As US Inflation Falls; Tech Leads Global Rally Amid Geopolitical Heat
Indian benchmark indices faced a volatile session on Thursday, as global equities responded to easing inflation fears while geopolitical tensions kept commodity markets nervous. The Sensex managed a marginal recovery after hitting intraday lows, but the GIFT Nifty signals suggest a muted start for Indian equities on Friday.The Sensex closed at 78,079.96, rising by 113.61 points or 0.15 percent. Conversely, the Nifty finished down 40.10 points, settling at 24,395.85. This muted close was set against a backdrop of stronger-than-expected data from international markets.
Global Stocks Surge on US Inflation Relief
U.S. equities rallied strongly after producer-price inflation proved tame. This development, combined with earlier benign consumer inflation readings, reinforced the market's expectation that the Federal Reserve will hold interest rates steady at its September meeting.The S&P 500 climbed 0.65 percent to register a record closing high of 7,798.99. The Nasdaq Composite and Dow Jones Industrial Average also advanced, gaining 0.81 percent and 0.13 percent, respectively. Technology stocks were key drivers behind this rally, with memory chip companies posting sharp gains.
Asian Markets Advance as Rate Pause Expectations Grow
Asian equities showed a positive trend on Friday as data continued to support the view that the Federal Reserve will maintain its current interest rates. MSCI's Asia-Pacific equities gauge gained 0.5 percent, positioning the index for its fourth consecutive weekly gain since May.Technology shares led the gains across Asian markets. Japan’s Topix advanced 0.9 percent, and South Korea's tech-heavy Kospi rose by 1 percent. In comparison, US equity futures remained subdued after the overnight rally, with S&P 500 futures showing little change, though Hang Seng futures declined 0.6 percent.
Crude Oil Edges Higher Amid Middle Eastern Tensions
Crude oil prices saw a modest uptick on Friday as geopolitical risks intensified in the Middle East. The United States threatened to maintain an indefinite naval blockade of Iran, reviving supply concerns.Brent crude futures rose by 0.1 percent to $87.16 a barrel. US West Texas Intermediate crude (WTI) remained little changed at $81.29. This modest movement followed a previous decline exceeding two percent in both oil benchmarks on Thursday due to a softer global demand outlook.
Domestic Buying Cushions Foreign Selling Pressure
Domestic institutional investors (DIIs) continued to provide stability for the Indian market, successfully offsetting foreign fund outflows. DII buying extended into its third consecutive day, purchasing equities worth ₹4,353 crore.Foreign institutional investors (FIIs), however, continued their selling streak for a second session, offloading equities valued at ₹510 crore. The strong cushion provided by domestic flows moderated the overall volatility experienced across both major indices throughout Thursday’s trading session.
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