Indian equities extended their winning streak on Friday, with the Nifty rising for the eighth straight session. Softer US labour market data helped ease worries over inflation and strengthened bets that the Federal Reserve could soon start cutting interest rates. Hopes of a revival in US-India trade ties also supported investor sentiment.
The Sensex closed 356 points higher at 81,905, while the Nifty added 109 points to settle at 25,114. Both indices gained 1.5% for the week, marking their second straight weekly advance.
Friday’s rally was led by Bharat Electronics, Bajaj Finance, Bajaj Finserv, Axis Bank, Maruti Suzuki, and Tata Motors, which climbed between 1.3% and 4%. Autos gained momentum on the back of tax cuts, with Tata Motors up 3.4% and Maruti ahead nearly 3%.
IT stocks had their best week in four months, rising 4.3%. Infosys boosted sentiment with a share buyback plan, ending 1% higher.
Looking ahead, all eyes are on the U.S. Fed, which is expected to trim rates by a quarter point at its September 16–17 meeting, with markets betting on two more cuts before year-end. Lower US rates typically weaken the dollar and boost flows into emerging markets like India.
On the global front, Asian markets ended higher, with Chinese stocks hitting a three-and-a-half-year peak on AI optimism. In commodities, gold hovered near record highs at $3,644 an ounce, while Brent crude settled at $66.79 a barrel.
Back home, the rupee snapped back from record lows, closing at 88.28 against the dollar, helped by firm equities and a weaker greenback.