Indian Markets Open September with Gains Amid Expected Volatility

Indian stock markets opened September positively with gains in both the Nifty 50 and BSE Sensex indices. Market experts anticipate volatility this week due to upcoming US payroll data and possible Fed rate cuts. Sectoral indices showed mixed performance with Nifty Auto declining and Nifty IT leading gains.

The Indian stock markets opened September on a positive note as both major indices reported gains on Monday. The Nifty 50 index surged by 97.70 points, or 0.39%, to reach 25,333.60, while the BSE Sensex climbed 359 points, or 0.44%, to 82,725.28.

Market experts forecast volatility this week, with a particular focus on the release of US payroll data for August and revisions for the previous two months. Federal Reserve rate cuts are also anticipated, prompting investors to proceed cautiously.

'September starts with the Fed rate cuts imminent and volatility expected around the event. For Indian markets, we anticipate a minor correction as continuous positive moves may trigger profit-taking. A gap up is likely today, but some selling might occur at these all-time high levels,' Ajay Bagga, Banking and Market Expert, told ANI. In the Nifty 50 list, 42 shares advanced while 8 declined. Broader indices like Nifty Next 50 and Nifty 100 also witnessed gains, although the India Volatility Index (India VIX) surged by over 2%.

Sectoral indices revealed mixed trends: Nifty Auto declined due to a decrease in August vehicle sales, while Nifty IT posted a gain of 0.65%. Global markets are treading cautiously ahead of major data releases, with mixed responses across Asia. Japan's Nikkei 225 saw a slight correction of 0.04%, Hong Kong's Hang Seng dropped over 1.70%, and Indonesia's Jakarta Composite gained 0.58% as of the latest update.

(With inputs from agencies.)