Sensex rebounds after easing bets on September Fed rate hike

India’s BSE Sensex rose about 0.6% to 76,631 on Friday, recovering after four straight sessions of losses as expectations for a September US Fed rate hike eased and lifted risk appetite. Fed Governor Christopher Waller said he favored keeping rates unchanged if incoming data confirms easing inflation pressures. Gains were capped 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 stayed 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 increase hedging. 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 rose 5.2%, Angel One gained 5% and Reliance added 2.1%. The benchmark is down 0.8% week-to-date and is on track for a fourth straight weekly decline.