Nifty takes winning streak to 8th day; Sensex tops 81,900; market outlook for next week

Domestic equity benchmarks Sensex and Nifty extended their rally on Friday, buoyed by global optimism as US inflation and jobless data reinforced expectations of a Federal Reserve rate cut at its September 16–17 meeting. August saw higher-than-expected increases in consumer prices. 

At the same time, sentiment was lifted by progress in US-India trade talks, though an official breakthrough is still awaited.

At the closing bell, the Sensex rose 355.97 points, or 0.44 per cent, to settle at 81,904.70, while the Nifty50 extended its winning streak to an eighth straight session, gaining 108.50 points, or 0.43 per cent, to close at 25,114.

Bharat Electronics emerged as the top gainer on the Sensex, climbing 3.67 per cent to Rs 399.20. Bajaj Finance advanced 3.22 per cent, Bajaj Finserv added 2.38 per cent, Axis Bank rose 1.69 per cent, Maruti Suzuki gained 1.35 per cent, and Tata Motors was up 1.22 per cent.

ICICI Bank, Bajaj Finance, Reliance Industries, Infosys and Axis Bank were the five stocks that contributed heavily to the Sensex’s rise. 

Among the sectoral indices, the BSE Metal index advanced 0.80 per cent to settle at 32,781.94, while the BSE Auto index gained 0.41 per cent to close at 59,961.76.

Overall, out of the 4,289 active stocks traded on the BSE, 2,086 ended with gains, while 2,058 settled lower and 145 remained unchanged. As many as 135 stocks scaled their 52-week highs during the session. A total of 53 others hit their 52-week lows. The session also saw 250 stocks locked at their respective upper circuits and 172 others at lower circuits.

Within the BSE Sensex pack, Bajaj Finance hit a fresh 52-week high of Rs 1,004.60.

Vinod Nair, Head of Research, Geojit Investments Limited, said the domestic market closed at a three-week high, supported by renewed global optimism over a potential Fed rate cut. 

“Sentiments improved further on reports that the EU may reject U.S. tariff proposals on India for buying Russian oil. Progress in U.S.-India trade talks is also expected to keep the positive momentum intact in the near term. The defence sector outperformed, aided by the Indian procurement authorities beginning negotiations for six next-generation conventional submarines," Nair said.