Market Wrap: Nifty extends rally to Day 8, Sensex up 356 pts on Fed rate cut bets, U.S.-India trade revival hopes – News Air Insight

Indian equities ended in the green on Friday, with the Nifty 50 rising for an eighth consecutive session, as softer U.S. labour market data helped temper concerns from a stronger-than-expected inflation reading, bolstering expectations that the Federal Reserve could begin cutting interest rates. Investor sentiment was also supported by signs of progress towards a potential revival of U.S.-India trade ties.

The S&P BSE Sensex closed 356 points, or 0.44% higher at 81,904.70, while the NSE Nifty 50 added 109 points, or 0.43%, to finish at 25,114.

Top Movers

The benchmark indices advanced for a second straight week, lifted by a broad-based rally that left both the Sensex and Nifty up 1.5%. Investors drew support from government tax cuts on hundreds of goods and renewed optimism over the prospect of reviving trade talks with the U.S.

On Friday, the 30-stock Sensex was led higher by Bharat Electronics, Bajaj Finance, Bajaj Finserv, Axis Bank, Maruti Suzuki and Tata Motors, which gained between 1.3% and 4%.

IT companies, heavily exposed to U.S. markets, posted their best week in about four months, rising 4.3%. Infosys, India’s second-largest IT services firm, boosted sentiment with a share buyback plan and ended 1% higher.

Markets are now focused on the Federal Reserve, which is widely expected to trim rates by a quarter point at its September 16–17 meeting. Investors are also betting on two more cuts before year-end. Lower U.S. rates tend to weaken Treasury yields and the dollar, steering capital toward emerging markets such as India.Autos climbed 2.1% for the week, with Tata Motors up 3.4% and Maruti Suzuki ahead 2.9%, helped by tax reductions that several carmakers have already passed on to buyers.

Traders were awaiting India’s inflation data, due later Friday, for fresh cues.