Indian Markets Close Higher on Friday
Mumbai, September 4, 2026: Indian equity markets ended higher on Friday as easing concerns over an imminent US Federal Reserve rate hike improved investor sentiment. However, profit booking at higher levels and continued geopolitical tensions limited the gains.
The Sensex gained 362.57 points, or 0.48%, to close at 76,515.43, while the Nifty rose 24.25 points, or 0.10%, to settle at 23,897.70.
During the session, the Sensex climbed as much as 730 points, or 0.95%, to touch an intraday high of 76,883.14.
The Nifty also crossed the 24,000 mark during the session, reaching an intraday high of 24,005.75, before giving up most of its gains by the close.
Metal Stocks Lead Sectoral Gains
Among sectoral indices, Nifty Metal emerged as the biggest gainer, rising more than 1%. Financial services stocks excluding banks also witnessed buying interest.
On the other hand, technology and healthcare-related stocks remained under pressure. Nifty IT declined 0.47%, while Nifty Pharma fell 0.68% and Nifty Healthcare dropped 0.87%.
Market volatility also eased sharply, with the India VIX falling 6.24% to 10.63.
Fed Rate Outlook Remains Key
Analysts said Indian equities witnessed a relief rally as concerns about an immediate US Federal Reserve rate hike eased. However, profit booking at higher levels and continuing geopolitical tensions in the Middle East capped the upside.
Expectations of a marginal decline in US core inflation for August could further strengthen hopes of a pause in Fed rate hikes, potentially helping contain volatility in global bond yields.
Smallcaps Touch Fresh Lifetime Highs
Buying remained visible in several stocks and sectors across the broader market. Small-cap indices touched fresh intraday lifetime highs, highlighting continued investor interest beyond the benchmark indices.
Analysts said strong earnings momentum, resilient economic growth and robust domestic demand continue to support investor confidence in the broader Indian market.
