Sensex rebounds after easing bets on September Fed rate hike

India’s BSE Sensex rose about 0.6% to 76,631 on Friday, rebounding from four straight sessions of losses as easing expectations for a September US Fed rate hike lifted risk appetite.

Fed Governor Christopher Waller, who favored keeping rates unchanged if incoming data confirms easing inflation pressures.

However, gains were limited by elevated oil prices and Middle East tensions, with Brent crude near $96 a barrel and on track for its strongest weekly rise since mid-July.

Investors also remained cautious over India’s new closing-auction mechanism after Sensex put premiums surged 400%-500% on Thursday as the indicative index briefly fell 2.5%, prompting traders to cut positions and boost hedging.

Among stocks, Gland Pharma was in focus after reports said Fosun Pharma may sell up to a 5% stake worth 22.8 billion rupees through a block deal.

IFCI (5.2%), Angel One (5%), and Reliance (2.1%) gained.

The benchmark is down 0.8% week-to-date, on track for a fourth straight weekly decline.