Sensex rises 123 pts; Nifty takes winning run to 7th day; what's next?

Domestic equity benchmarks Sensex and Nifty extended their winning streak on Thursday, ahead of the crucial US inflation data and the US Federal Reserve policy review later this week. Investors also awaited fresh updates on India-US trade negotiations.

At the closing bell, the Sensex rose 123.58 points, or 0.15 per cent, to settle at 81,548.73, while the Nifty50 extended its winning streak to a seventh straight session, gaining 32.40 points, or 0.13 per cent, to close at 25,005.50.

US inflation data will be released today, September 11, while the Federal Reserve’s policy announcement is scheduled for September 16–17 next week.

NTPC emerged as the top gainer on the Sensex, climbing 1.63 per cent to Rs 330.90. Axis Bank advanced 1.61 per cent, Eternal added 1.34 per cent, Power Grid rose 1.33 per cent, Bharti Airtel gained 1.29 per cent, and Sun Pharma was up 0.99 per cent.

Bharti Airtel, Axis Bank, Reliance Industries, Eternal and State Bank of India were the five stocks that contributed heavily to the Sensex’s rise. 

Among the sectoral indices, the BSE Oil & Gas index advanced 1.19 per cent to settle at 26,241.72, while the BSE Energy index gained 0.96 per cent to close at 11,271.04.

Overall, out of the 4,281 active stocks traded on the BSE, 2,119 ended with gains, while 2,009 settled lower and 153 remained unchanged. As many as 113 stocks scaled their 52-week highs during the session. A total of 42 others hit their 52-week lows. The session also saw 232 stocks locked at their respective upper circuits and 162 others at lower circuits.

Two stocks within the BSE 200 index—Indian Bank and Waaree Energies—have both surged to their respective 52-week highs. 

Vinod Nair, Head of Research, Geojit Investments Limited, said the 50-pack index has closed above the critical threshold of 25,000. “The unexpected imposition of a 50 per cent tariff on India by the US initially dragged the main index down to 24,400,” he said.

“However, the index has been steadily recovering from this decline. This resurgence can be attributed to several factors like expectation of limited impact on the domestic economy, the Indian government's robust strategic response to US long-term policies, and the announcement of significant domestic reforms, such as the GST, to mitigate trade-related repercussions,” Nair said.

“Recently, positive signals from the US to reinitiate trade discussions with India have further paved the way for the index to ascend into a new range, which was highly expected by the market," Nair added.