On September 1, Indian benchmark indices Sensex and Nifty rebounded after three days of losses, with Sensex rising over 550 points to hover near 80,366 and Nifty climbing nearly 200 points to cross 24,600. Broader indices also performed well, with smallcap and midcap indices gaining up to 2%. Most sectors traded in the green, led by IT stocks, except FMCG and pharma.
Several factors contributed to this uptrend. Strong Q1 GDP growth of 7.8%—the highest in five quarters—exceeded both RBI and market expectations, boosting investor sentiment. Prime Minister Modi’s participation in the SCO summit in China and improved India-China relations also supported the rally. Additionally, a US court ruling declaring most of Trump-era tariffs illegal offered some relief to markets.
Value buying emerged after a sharp decline over the past few sessions. Technical indicators suggest cautious optimism, with key Nifty support at 24,350 and resistance around 24,700–24,800. IT stocks surged 1.3% as US inflation data aligned with expectations, raising hopes of a Fed rate cut. Expectations around upcoming GST reforms and mutual fund inflows are also seen as strong market drivers.