Did the Stock Market Gain This Week Due to India-US Trade Talks and Fed Rate Cuts?
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Synopsis
This week saw the Indian stock market rise as trade talks between India and the US resumed and the Federal Reserve cut rates. PSU banks rallied while Adani stocks surged after favorable news. Investors are now focused on upcoming economic indicators that may influence market direction. Discover what these changes mean for investors and the market outlook.
Key Takeaways
- Indian equity benchmarks rose for three consecutive days.
- Benchmark indices ended the week with gains of around **0.85%** and **0.89%**.
- PSU banks continued their rally with over **1%** increase.
- Adani stocks surged significantly after favorable news from SEBI.
- Investors are focused on upcoming economic indicators.
Mumbai, Sep 20 (NationPress) The Indian equity benchmarks increased for three straight days this week before ultimately retreating slightly, as investors realized profits when the markets reached a two-month peak amidst the renewal of India-US trade negotiations and the Federal Reserve's rate cut.
Benchmark indices Nifty and Sensex concluded the week with gains of approximately 0.85 percent and 0.89 percent respectively, even as the IT and FMCG sectors faced selling pressure. Midcap and small-cap indices also ended slightly higher.
PSU banks continued their upward trend, with the Nifty PSU Bank Index rising over 1 percent.
Stocks from the Adani Group experienced significant buying interest after SEBI dismissed allegations from Hindenburg Research. Adani Enterprises soared by 6 percent, while Adani Green Energy, Adani Energy Solutions, Adani Power Ltd, and AWL Agri Business Ltd also recorded substantial gains, with some shares increasing by up to 12 percent.
From a technical standpoint, Nifty formed a bearish candle on the daily frame but exhibited a longer lower shadow, indicating savvy buying at lower levels. It created a bullish candle on the weekly frame and has been making higher lows for the past three weeks.
Since the lows in August, the benchmark indices have risen nearly 4 percent.
“With GST rationalization set to commence next week and an anticipated boost in festive demand, investor focus has shifted towards consumption-driven sectors,” analysts noted.
Looking ahead, investors will be closely monitoring key US macroeconomic indicators — including GDP, jobless claims, and core inflation — for hints regarding the Fed’s policy direction. Domestically, the forthcoming manufacturing PMI will act as a timely gauge of industrial sentiment, potentially signaling the long-awaited demand revival.
Meanwhile, US equities reached new record highs, with the Dow, S&P 500, Nasdaq, and Russell 2000 climbing by as much as 1 percent after the Federal Reserve resumed its rate-cutting cycle and indicated further easing. The Federal Open Market Committee (FOMC) decided to reduce the target Fed Funds rate by 25 basis points. The median projections forecast real GDP growth in the US at 1.6 percent year-over-year in 2025, with the unemployment rate at 4.5 percent and core PCE inflation at 3.1 percent.
Point of View
The recent developments in the stock market reflect not just investor sentiment but also a broader economic landscape shaped by international relations and domestic policies. As we navigate through these changes, it is essential to emphasize the importance of informed investment decisions. This week’s gains underscore the resilience of the Indian market amid global economic shifts.
NationPress
20/09/2025
Frequently Asked Questions
What led to the rise in the Indian stock market this week?
The rise in the Indian stock market was primarily fueled by the resumption of **India-US trade talks** and the **Federal Reserve's rate cut**, which boosted investor confidence.
How did the Adani Group stocks perform this week?
Adani Group stocks witnessed strong buying interest, particularly after SEBI dismissed allegations from Hindenburg Research, resulting in significant gains for various Adani shares.
What are investors looking forward to in the coming weeks?
Investors are keenly awaiting key US macroeconomic indicators, such as **GDP** and core inflation, as well as the upcoming **manufacturing PMI** that could signal a revival in demand.
