Indian equity markets opened higher on Friday, September 4, recovering after four consecutive sessions of losses. Early trading was supported partly by reduced expectations of a US Federal Reserve interest-rate hike in September.
The Nifty 50 rose around 0.23% to 23,927.1 in early trading, while the BSE Sensex gained approximately 0.66% to 76,652.19. Seven of the 16 major sectors were trading higher, while small-cap stocks also recorded gains.
However, investors remain cautious because international crude oil prices continue to be elevated. Brent crude was trading near $96 a barrel amid continuing geopolitical tensions in the Middle East. Higher oil prices are particularly important for India because the country imports a large share of its crude oil requirements.
The Indian rupee has recently benefited from capital inflows and Reserve Bank of India intervention, but rising oil prices could create pressure on the currency and broader economic outlook.
Market participants are also watching global monetary-policy signals and upcoming US economic data for clues about the direction of interest rates.
