Stock Market Today, September 4: Sensex Gains Over 500 Points, Nifty Holds Above 23,900
Indian equity markets opened higher on Friday, with the Sensex climbing more than 500 points in early trade while the Nifty remained above the 23,900 mark.
At 9:20 am, the Sensex stood at 76,664.98, gaining 512.12 points or 0.67% from its previous close of 76,152.86. The Nifty was at 23,926.60, up 53.15 points or 0.22% from Thursday’s close of 23,873.45.
Market volatility eased at the opening bell, with the India VIX declining 3.10% to 10.99. Broader markets also started in positive territory, as the Nifty Smallcap 100 and Nifty Microcap 250 each advanced 0.45%.
The Nifty Bank edged up to 57,429.60, while the Nifty Financial Services index gained 0.41%.
IT STOCKS LEAD EARLY GAINS
IT stocks emerged as the strongest performers among sectors in early trade. The Nifty IT index advanced 1.10%, while Financial Services ex-Bank, MidSmall Financial Services and MidSmall IT & Telecom indices also gained more than 0.6%.
Realty, media and oil & gas stocks were among the other sectors trading higher. Meanwhile, consumer durables, automobile and FMCG stocks came under pressure.
PRIVATE INVESTMENT OFFERS HOPE
V K Vijayakumar, chief investment strategist at Geojit Investments, said the market is currently being influenced by a combination of supportive domestic indicators and concerns from global markets.
He pointed to a sharp 97% year-on-year increase in private investment during the first quarter of FY27 as an encouraging sign. According to Vijayakumar, the surge could signal a revival in private capital expenditure and provide additional support to economic growth.
However, he warned that rising global bond yields remain a significant risk for equities.
The US 10-year Treasury yield is around 4.8%, while Japan’s 10-year yield has reached a 30-year high of 3%. The UK’s 30-year yield is near 6%, and India’s 10-year yield is also hovering close to 7%.
Vijayakumar noted that higher bond yields could make fixed-income assets increasingly attractive, potentially encouraging investors to shift money away from equities and emerging markets.
DOMESTIC DATA PROVIDES SUPPORT
Despite global concerns, strong domestic economic indicators continue to offer some support to Indian markets. GST collections, automobile sales and credit growth remain healthy, pointing towards continued resilience in the domestic economy.
With positive domestic signals competing against rising global yields and other external risks, Vijayakumar expects volatility to remain elevated in the Indian equity market in the near term.
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