Why Are Nifty and Sensex Opening Flat?
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Synopsis
On September 15, the Indian benchmark indices opened steadily, influenced by positive inflation data and expectations surrounding a US Federal Reserve rate cut. As investors await fresh cues, key market movements and sector performance are underscored in our analysis.
Key Takeaways
- Sensex and Nifty opened on a steady note.
- Inflation rates have cooled to 2.07%.
- US markets showed strong gains, influencing Indian markets.
- Nifty Realty emerged as the top gainer.
- Analysts project positive trends for Indian equities.
Mumbai, Sep 15 (NationPress) The Indian benchmark indices commenced trading on a steady note with a slight positive bias on Monday, buoyed by favorable domestic inflation data and rising expectations regarding a US Federal Reserve rate cut.
As of 9:30 AM, the Sensex had gained 4.5 points or 0.005 percent to reach 81,909, while the Nifty increased by 4.15 points or 0.017 percent, standing at 25,118.
The broadcap indices outshined the benchmark indices, with the Nifty Midcap 100 climbing by 0.26 percent, and the Nifty Small Cap 100 rising by 0.53 percent.
Among the top gainers on the NSE Nifty 50 index were Bajaj Finance, Tata Motors, Hero Motocorp, and Bajaj Finserv. On the flip side, Infosys Ltd., Tata Consultancy Services, Sun Pharmaceutical Industries, Dr. Reddy's Laboratories Ltd., and Shriram Finance Ltd. exerted downward pressure on the Nifty 50 index.
Looking at sectoral performance, Nifty Realty emerged as the top gainer with a jump of 1.19 percent, followed by Nifty PSU Bank (up 0.39 percent) and Nifty Auto (up 0.38 percent). Conversely, Nifty Pharma faced the most significant drop, decreasing by 0.78 percent.
Latest government data revealed that inflation cooled to 2.07 percent, significantly lower than the RBI’s forecast of 3.1 percent for August.
Analysts noted that Indian equities, having recently lagged behind global counterparts, now appear to be attractive. Factors such as ongoing GST reforms, expectations of a Fed rate cut, and improving US-India trade relations are likely to bolster the market.
Last week, Nifty 50 achieved its eighth consecutive gain, closing above the psychological level of 25,100 for the first time since July, marking its longest winning streak in a year and the highest weekly gain in nearly three months.
According to Devarsh Vakil, Head of Prime Research at HDFC Securities, "Nifty has been steadily overcoming crucial resistances, and the weekly chart indicates a pattern of higher tops and bottoms, which is a positive signal for a sustained bullish trend."
He added that Nifty appears to be approaching the next resistance level of 25,250, while the 24,900 mark could serve as support.
The major US indices recorded robust weekly gains, closing near all-time highs. The Nasdaq surged by 2.0 percent, the S&P 500 climbed by 1.6 percent, and the Dow rose by 1.0 percent, marking the best week since early August.
Most Asian markets also experienced notable gains during the morning session. The Shanghai index in China increased by 0.22 percent, Shenzhen added 1.07 percent, Japan's Nikkei rose by 0.89 percent, and Hong Kong's Hang Seng Index jumped by 0.32 percent. South Korea's Kospi edged up by 0.52 percent.
The US markets are currently reflecting a 96.4 percent probability for a 25-basis-point rate cut on September 17, with further cuts anticipated through the end of the year. Softer labor data and persistent inflation support the dovish shift, enhancing demand for equities and cryptocurrencies, analysts stated.
Point of View
I believe that the current market behavior reflects a cautious optimism among investors. With the potential for a rate cut from the US Federal Reserve, along with favorable domestic inflation data, the Indian markets are poised for a critical week ahead. It’s essential for investors to stay informed and strategically position themselves in anticipation of these developments.
NationPress
15/09/2025
Frequently Asked Questions
What is the current status of Indian benchmark indices?
The Indian benchmark indices opened flat with a positive bias, with the Sensex at 81,909 and the Nifty at 25,118.
What factors are influencing the market today?
Positive domestic inflation data and expectations of a US Federal Reserve rate cut are influencing the market.
Which sectors are performing well?
The Nifty Realty sector is the top gainer, with a jump of 1.19%, followed by Nifty PSU Bank and Nifty Auto.
What has been the trend for Nifty recently?
Nifty 50 has achieved its eighth consecutive gain, closing above 25,100 for the first time since July.
What is the inflation rate in India currently?
The inflation rate has cooled to 2.07%, significantly below the RBI's projection of 3.1%.
