Nifty, Sensex end higher as Fed rate hike concerns ease, gains capped by profit booking

**Indian Equity Markets Close Higher Amid Easing Fed Rate Hike Concerns**

**MUMBAI** – Indian equity markets concluded Friday’s trading session with gains, as investor sentiment was bolstered by easing concerns regarding potential interest rate hikes by the U.S. Federal Reserve. However, the upward momentum was tempered by profit-booking at higher levels and ongoing geopolitical tensions in the Middle East.

The BSE Sensex rose by 362.57 points, or 0.48%, to close at 76,515.43. The Nifty 50 index gained 24.25 points, or 0.10%, ending the day at 23,897.70.

Vinod Nair, Head of Research at Geojit Investments Limited, described the market movement as a “relief rally.” Nair noted that while the easing of U.S. rate hike concerns provided support, gains were limited by profit-taking and regional instability. He added that investors are currently focused on upcoming U.S. employment and Consumer Price Index (CPI) data, which are expected to influence future interest rate policy.

“Consensus expectations of a marginal decline in core inflation for August could strengthen expectations of a pause in Fed rate hikes and help contain bond yield volatility,” Nair said.

Despite the broader market’s mixed performance, small-cap indices reached new intraday lifetime highs. Nair attributed this to strong earnings momentum, resilient economic growth, and robust domestic demand.

**Sectoral Performance and Market Movers**
The Nifty Metal index led sectoral gains, rising 1.27%. Conversely, several other sectors faced downward pressure, including Nifty Realty (-0.98%), Nifty Pharma (-0.68%), Nifty IT (-0.50%), Nifty PSU Bank (-0.26%), and Nifty FMCG (-0.07%).

Top gainers on the Nifty included SBI Life, Tata Steel, and HDFC Life. Leading the decliners were HCL Tech, Maruti, Max Health, and Bharti Airtel.

Riyank Arora, Associate Vice President at Hedged.in, noted that the market’s ability to sustain recent gains suggests underlying strength. “The broader trend remains firmly in the bulls’ favour as long as supports hold,” Arora stated.

**Global and Commodity Markets**
Asian markets also saw positive movement on Friday. Japan’s Nikkei 225 rose 1.30%, Singapore’s Straits Times gained 1.05%, Hong Kong’s Hang Seng increased 1.73%, Taiwan’s weighted index climbed 1.49%, and South Korea’s KOSPI rose 1.61%.

In the commodities market, Brent crude oil was trading at $95 per barrel. Gold prices saw a marginal decline of 0.47%, trading at Rs 1,55,045 per 10 grams for 24-karat gold, while silver was priced at Rs 2,40,890 per kilogram.

Article source: hongkongherald.com | Image credit: Big News Network.com