Sept 4 (Reuters) – Indian shares rose on Friday after four consecutive sessions of losses, as fading expectations of a U.S. Federal Reserve rate hike this month lifted global equities and pulled bond yields lower.
Fed Governor Christopher Waller said on Thursday he would support keeping interest rates unchanged at the U.S. central bank’s next policy meeting if upcoming data confirms inflation pressures are easing.
Expectations for a rate increase at the Fed’s mid-September meeting came down to roughly 50%, versus about 63% in the prior session, according to CME FedWatch.
“Global cues have turned supportive after softer Treasury yields and dovish Fed commentary raised hopes that further rate hikes may not be warranted if inflation continues to ease,” said Rajesh Palviya, head of research at Axis Direct.
The Nifty 50 (.NSEI), rose 0.35% to 23,957.80, while the Sensex (.BSESN), gained 0.75% to 76,730.4 by 10:02 a.m. IST, rebounding after a volatile closing auction disproportionately dragged the 30-share index lower on Thursday.
The Sensex plunged as much as 2.5% during the auction before ending 0.55% lower, compared with a 0.17% decline in the Nifty.
Capital-market stocks rallied after SEBI signalled changes to the derivatives settlement-price mechanism following volatility triggered by the new closing auction.
BSE (BSEL.NS), jumped 4.5%, Angel One (ANGO.NS), gained 5.4% and Groww (BILO.NS) rose 2.5%, while Nuvama Wealth (NUVA.NS), and Motilal Oswal (MOFS.NS), added 1.2% each.
SEBI said it would issue a consultation paper on revising the mechanism.
IT companies (.NIFTYIT), , which earn a significant share of their revenue from the U.S., gained about 0.6%.
Nine of 16 major sectors rose, while small- (.NIFSMCP100), and mid-caps (.NIFMDCP100), gained 0.5% and 0.1%.
The Nifty and Sensex had fallen 1.3% and 1.4% over the previous four sessions as rising crude and bond yields hurt sentiment.
Meanwhile, Brent added 0.5% to $96, heading for its strongest weekly rise since mid-July.
This report is given by Reuters. The Sen Times holds no responsibility for its content.