The Indian stock market finished Tuesday’s trading session higher, with technology stocks doing most of the heavy lifting amid increased bets on a US Federal Reserve rate cut in its upcoming policy meeting.
Pharma stocks also contributed to the gains, while a resurgence in consumer goods stocks supported the frontline indices. The Nifty 50 rose 0.39% to close at 24,868, while the S&P BSE Sensex advanced 314 points, or 0.39%, to 81,101.
Broader markets also ended higher, with the Nifty Midcap 100 and Nifty Smallcap 100 gaining 0.18% and 0.34%, respectively.
Sector-wise, Nifty IT emerged as the top gainer, rising 2.76%, followed by Nifty Pharma and Nifty FMCG, which added 0.86% and 0.77%, respectively. On the losing side, Nifty Realty was the top laggard, slipping 0.30%, followed by Nifty Oil & Gas and Nifty PSU Bank, which declined 0.30% and 0.13%, respectively.
Last week, a surprisingly weak US jobs report added to hopes that the path for interest rates is lower. However, any unexpected strength in inflation readings could disrupt that outlook. The August producer price index report is due Wednesday morning, while the consumer price index will be released on Thursday.
The US Labor Department will also publish a preliminary revision estimate of employment levels for the 12 months through March later in the day. Markets are now pricing in an over 11% probability that the Fed could lower rates by 50 bps this month, compared to zero a week ago, according to the CME FedWatch tool.
Over 25 Nifty 500 stocks closed with gains between 3% and 8%
Gujarat Fluorochemicals led the gainers’ list, rising 8% to ₹3,640, its biggest intraday jump since September 2024, followed by Affle (India) and Action Construction, which gained 7% and 6.4%, respectively.
Ending its four-day losing streak, Intellect Design Arena advanced 6.36% to ₹959 apiece, while RailTel Corporation rose 5.35% to ₹364 apiece. The rally in RailTel followed a work order worth ₹18.56 crore from Indian Railway Catering and Tourism Corporation (IRCTC) for comprehensive cyber security intelligence services.
The contract period is three years, with annual payment terms and a 5% performance bank guarantee (PBG). Likewise, Titagarh Rail Systems gained 4.9% to ₹886 apiece.
Meanwhile, Infosys shares rose 5% to ₹1,502 after the company informed investors on Monday that its board of directors will meet on Thursday, September 11, to consider a proposal for the buyback of fully paid-up equity shares.
The buyback proposal comes at a time when Infosys stock has struggled to gain momentum, closing in the red in five of the last seven months and losing 24% of its value. This trend mirrors a broader decline across the tech sector, as investors continue to pare holdings amid ongoing sector-specific challenges.
Overall, 27 constituents from the Nifty 500 pack ended the session with gains between 3% and 8%.
Paytm, Nykaa among key losers
Following a sharp rally, investors booked profits in Netweb Technologies shares, dragging them 4% lower to ₹2,985. Gujarat Mineral Development Corporation saw a similar trend, falling 3% to ₹523 after a strong run-up in recent sessions.
Paytm and Nykaa also drifted lower by 2.7% and 2.5%, respectively, while Cohance Lifesciences and Chalet Hotels slipped over 2% each. The losers’ list was limited, with only seven stocks from the Nifty 500 pack declining more than 2%.
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