FX.co ★ Sensex Rebounds on Easing Fed Rate Hike Bets

India’s BSE Sensex rose about 0.8% to 76,728 on Friday, snapping a four-session losing streak as softening expectations of a US Federal Reserve rate hike in September boosted risk appetite. Fed Governor Christopher Waller signaled support for keeping rates unchanged if incoming data continues to confirm easing inflation pressures.

Upside momentum was capped, however, by elevated crude prices and ongoing tensions in the Middle East, with Brent crude hovering near $96 a barrel and heading for its strongest weekly gain since mid-July. Sentiment was also tempered by caution around India’s new closing-auction mechanism, after Sensex put option premiums spiked 400%–500% on Thursday when the indicative index briefly dropped 2.5%, prompting traders to pare positions and increase hedging.

In stock-specific action, Gland Pharma drew attention following reports that Fosun Pharma may offload up to a 5% stake, valued at 22.8 billion rupees, via a block deal. Among notable movers, IFCI climbed 5.2%, Angel One advanced 5%, and Reliance rose 2.1%. Despite Friday’s rebound, the benchmark remains down 0.7% week-to-date and is on course for a fourth consecutive weekly decline.