Bulls dominated another session as the Indian stock market closed higher for the eighth consecutive session on Friday, September 12, largely supported by metal stocks, which gained strength from the falling US Dollar index amid rising hopes of a US Federal Reserve rate cut next week.
The rally in pharma stocks, along with a smart rebound in auto and tech stocks, also lent support to the market, pushing the Indian stock market to an 8-week high. Both the Nifty and Sensex closed the session with gains of 0.44% each and finished the week with rallies of over 1.5%, marking their second consecutive weekly winning streak.
The broader markets also closed higher, with the Nifty Midcap 100 gaining 0.38% and the Nifty Smallcap 100 index rising 0.65%. Both indices ended the week with gains of up to 2%.
The US Federal Reserve’s Open Market Committee, scheduled to meet next week, is widely expected to announce at least a quarter-point cut in interest rates after the August inflation print came in line with expectations, giving the central bank room to ease policy amid a slowing labor market.
Jobless claims jumped 27,000 to 263,000, the highest since 2021, highlighting a softer jobs backdrop. Traders are pricing in roughly a 93% chance of a 25-basis-point cut at the Fed’s September 17 meeting, with the odds of a larger half-point move edging higher.
Meanwhile, the US and India are close to resolving differences over a trade deal, President Donald Trump’s pick for ambassador said Thursday, while reiterating demands that New Delhi stop buying Russian oil.
Trump imposed 50% tariffs on India in August, half of which were penalties for Russian energy purchases, which he claims are helping President Vladimir Putin finance his war in Ukraine.
The US president is also pressuring European Union leaders to join him in ratcheting up tariffs on New Delhi and Beijing to push Putin toward ceasefire talks with Ukraine, Bloomberg reported.
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