4 September 2026 Punjab Khabarnama Bureau : Indian benchmark indices opened sharply higher on Friday, September 4, after four consecutive sessions of losses. The Sensex climbed nearly 600 points, while the Nifty 50 moved above the 23,950 mark, as positive global cues improved investor sentiment.
Sensex, Nifty Rally in Early Trade
The Sensex gained as much as 594 points to 78,746, while the Nifty rose around 77 points to 23,949 in early trade. The gains followed a weak session on Thursday, when the Sensex fell 417 points and the Nifty closed at 23,873.45.
The recovery marked a reversal after the Indian market’s four-session losing streak.
Positive Global Cues Support Indian Markets
A key driver behind Friday’s rally was the stronger performance of global equity markets.
Asian stocks largely advanced, while US markets had closed higher overnight. The Dow Jones gained 624 points, the S&P 500 rose 81 points and the Nasdaq added 366 points, providing a positive backdrop for Indian equities.
Asian technology stocks also gained, helping strengthen risk appetite across the region.
Fed Rate-Hike Expectations Ease
Another important factor was a shift in expectations surrounding US Federal Reserve policy.
Federal Reserve Governor Christopher Waller said he could support keeping interest rates unchanged at the next meeting if incoming data confirms that inflation pressures are easing.
Following his comments, the market-implied probability of a September rate hike fell to around 50% from 63% a day earlier. Lower expectations for tighter US monetary policy helped support global equities and pushed bond yields lower.
IT Stocks Lead Gains
Information technology shares were among the notable gainers during the early rally.
The BSE IT index rose about 283 points, while stocks including HDFC Bank, Reliance Industries, BEL, Trent, IndiGo and Bajaj Finserv also featured among the stronger Sensex performers.
The positive sentiment toward technology stocks was also supported by the strong overnight performance of US tech shares.
Volatility Gauge Falls
The decline in India VIX provided another supportive signal.
The volatility index fell nearly 2% to 11.16, indicating relatively lower near-term uncertainty compared with the previous session.
A lower VIX can encourage risk-taking, although it does not guarantee that market volatility will remain subdued.
Crude Oil Remains a Concern
Despite the strong opening, rising crude oil prices remain a key risk for Indian markets.
Brent crude was trading around $96 a barrel, with oil prices heading for their strongest weekly gain since mid-July as renewed US-Iran tensions raised concerns about disruptions to Middle Eastern energy supplies.
For India, which imports a large share of its crude requirements, sustained high oil prices can increase inflationary pressures and weigh on the country’s external finances.
Foreign Investor Selling in Focus
Foreign institutional investors remained a concern for the market.
FIIs sold Indian equities worth around ₹2,345.87 crore on September 3, while domestic institutional investors bought shares worth approximately ₹4,977 crore.
Strong domestic institutional buying has helped cushion some of the pressure from foreign outflows.
Nifty 24,000 Level in Focus
With the Nifty approaching the psychological 24,000 mark, traders are likely to watch whether the index can sustain gains above this level.
Market analysts have pointed to the 24,000–24,050 zone as an important area for determining whether the current rebound can develop into a stronger upward move.
US Jobs Data Could Influence Sentiment
Global markets are also awaiting the latest US employment data, which could influence expectations for the Federal Reserve’s next interest-rate decision.
A weaker labour market could reinforce expectations of a rate pause, while stronger-than-expected data could revive concerns about inflation and monetary tightening.
Geopolitical Risks Remain
The market’s gains come despite continued uncertainty surrounding the US-Iran conflict.
Renewed hostilities have pushed oil prices higher and could create additional volatility if the situation threatens shipping through the Strait of Hormuz. Investors are therefore balancing supportive global equity cues against elevated energy and geopolitical risks.