Market Wrap: Sensex gains 314 points, Nifty above 24,850 on Infosys buyback optimism, consumer stocks rally

Indian equities ended in the green on Tuesday, with the Sensex and Nifty extending gains for a second day as Infosys’ announcement of a potential share buyback sparked a rally in IT stocks. Consumer discretionary shares also advanced amid optimism over broad cuts to goods and services taxes, while investor sentiment was further supported by growing expectations of a U.S. interest-rate reduction later this month.

The S&P BSE Sensex climbed 314 points, or 0.39%, to finish at 81,101, while the NSE Nifty 50 added 95 points, or 0.39%, to close at 24,869.

Top Movers

On the Sensex, Infosys, Tech Mahindra, Adani Ports, HCL Technologies and TCS led the rally, rising between 1% and 5%.

The IT sector outperformed, climbing 2.8% as Infosys jumped 5% after announcing plans to consider a share buyback on September 11. IT stocks accounted for the bulk of the Nifty’s gains, with three of the index’s top four performers coming from the sector.

Investors are also encouraged by the prospect of lower U.S. interest rates, which could revive technology spending in the world’s largest economy, a crucial market for Indian IT firms. Cheaper borrowing costs also make emerging markets like India more attractive to global investors.

Live Events

Bets on a Federal Reserve rate cut at the September 16–17 policy meeting increased after U.S. payroll data for August showed fewer-than-expected job additions.Consumer discretionary and FMCG shares gained 0.6% on continued optimism surrounding proposed broad cuts to goods and services taxes.In the broader market, small-cap and mid-cap indices rose 0.3% and 0.2%, respectively.

Expert views

The domestic equity market edged higher today, buoyed by positive global cues, with a notable rebound in IT stocks linked to a buyback announcement from Infosys despite prevailing headwinds, said Vinod Nair, Head of Research at Geojit Investments, adding that “conversely, auto stocks came under pressure due to profit booking after recent gains on GST rationalisation.”

“The market sentiment is likely to remain range-bound amid lingering uncertainties over global trade negotiations. However, rising prospects of a FED rate cut, along with supportive domestic macros, may help sustain optimism in the short term,” said Nair.

In technical terms, the Nifty traded with a positive bias and successfully reclaimed the 100-DMA at the 24,820 level, said Nilesh Jain, Head of Technical and Derivatives Research at Centrum Broking, adding that momentum indicators and oscillators have turned positive, with the RSI crossing above the 50 mark, suggesting a short-term bullish momentum.

“However, the index remains at a critical juncture as it nears the key resistance zone around the 25,000 level, which continues to act as a significant hurdle. A decisive breakout above this level is essential to confirm the start of a fresh upward leg. On the downside, the immediate support of 21-DMA is placed at 24,720 level,” said Jain.

Global Markets

World equity markets traded mixed on Tuesday as investors awaited key U.S. economic data later this week, which could influence whether the Federal Reserve cuts interest rates at its upcoming policy meeting.

In Asia, Japan’s Nikkei 225 pared early gains to finish 0.4% lower amid political uncertainty following Prime Minister Shigeru Ishiba’s announcement over the weekend that he plans to step down. His successor remains unclear and could take weeks to determine. The Nikkei had briefly risen above the 44,000 level earlier in the session.

South Korea’s Kospi advanced 1.3%, while Hong Kong’s Hang Seng surged 1.2%. China’s Shanghai Composite, however, slipped 0.5%, reflecting the region’s mixed trading after a stronger start to the day.

In Europe, the STOXX 600 edged up 0.1%, while overall Asian equities added 0.9%.

Market expectations for U.S. monetary policy shifted sharply: the CME FedWatch tool now shows an 11% chance of a 50-basis-point rate cut this month, compared with zero a week ago, according to Reuters.

Spot gold hit a fresh record of $3,659.10 an ounce, buoyed by anticipation of imminent Fed rate cuts.

Crude Impact

Oil prices extended gains on Tuesday, supported by a smaller-than-expected output increase from OPEC+, expectations that China will continue stockpiling crude, and lingering concerns over potential new sanctions on Russia.

Brent crude rose 47 cents, or 0.7%, to $66.49 a barrel by 0910 GMT, while U.S. West Texas Intermediate advanced 72 cents, or 1.2%, to $62.98.

Rupee vs Dollar

The Indian rupee ended Tuesday slightly lower, paring earlier gains to settle 3 paise down at 88.12 (provisional) against the U.S. dollar. The currency was supported earlier by weaker-than-expected U.S. jobs data, which bolstered expectations of a Federal Reserve rate cut.

Meanwhile, the dollar index, a measure of the greenback against a basket of six major currencies, fell 0.17% to 97.29.

(With inputs from agencies)

Add as a Reliable and Trusted News Source



_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}