Did the Stock Market Conclude the Week on a High Note?
Click to start listening
Synopsis
The Indian equity market concluded the week on a positive note, achieving eight consecutive gains despite geopolitical uncertainties. Driven by optimism over a potential US Federal Reserve rate cut and progress in trade negotiations, the Sensex and Nifty indices surged. This article dives into the factors influencing market sentiment and the performance of key sectors.
Key Takeaways
- Eight consecutive trading session gains for Indian equity indices.
- Optimism about a potential US Fed rate cut.
- Positive developments in India-US trade talks.
- Strong performance from the defence sector.
- The rupee shows signs of recovery.
Mumbai, Sep 12 (NationPress) The Indian equity indices wrapped up the week positively on Friday, securing a remarkable winning streak of eight consecutive trading sessions despite ongoing geopolitical uncertainties.
Optimism surrounding a potential rate cut by the US Federal Reserve, favorable developments in India-US trade negotiations, and increased buying in defence stocks bolstered market sentiment.
The Sensex closed at 81,904.70, marking an increase of 355.97 points or 0.44 percent. The 30-share index began trading with a significant gap-up at 81,758.95, compared to the previous day's closing of 81,548.73. The index further extended its momentum amid positive global cues, reaching an intraday high of 81,992.85.
The Nifty finished at 25,114.0, up 108.50 points or 0.43 percent.
The national market closed at a three-week high, driven by renewed global optimism regarding a possible Fed rate cut. Sentiment further improved on reports suggesting that the EU may reject U.S. tariff proposals on India for acquiring Russian oil, according to analysts.
Progress in US-India trade talks is anticipated to sustain the positive momentum in the near term. The defence sector saw significant gains, aided by the Indian procurement authorities initiating discussions for six next-generation conventional submarines, analysts noted.
Top gainers from the Sensex basket included BEL, Bajaj Finance, Bajaj FinServ, Axis Bank, Maruti, Tata Motors, ICICI Bank, L&T, Infosys, and PowerGrid, while Eternal, Hindustan Unilever, Trent, Asian Paint, Bharati Airtel, and ITC experienced declines.
The majority of sectoral indices ended positively. Nifty Fin Services surged by 184 points or 0.70 percent, Nifty Bank rose 139 points or 0.26 percent, Nifty Auto increased 122 points or 0.46 percent, and Nifty IT settled the session up 107 points or 0.3 percent. Meanwhile, Nifty FMCG saw a decline.
Broader indices followed a similar trend. Nifty Smallcap 100 rose 114 points or 0.64 percent, Nifty Midcap 100 jumped 183 points or 0.32 percent, and Nifty 100 closed up 106 points or 0.41 percent.
The rupee traded positively, gaining 0.18 percent at 88.27 as mixed FII inflows bolstered sentiment.
The dollar index remained weak below 98, providing additional strength to the rupee, while ongoing trade deal discussions with the US fostered optimism. Additionally, a decline in crude prices offered further minor support, according to Jateen Trivedi of LKP Securities.
Overall, the rupee appears poised to recover some lost ground, with expectations to test 87.75 in the coming days, while 88.50 is viewed as a resistance zone for reversal.
Point of View
The Indian equity market showcases resilience amid geopolitical tensions. The positive performance reflects investor confidence, driven by favorable trade developments and expectations of monetary easing. It's a testament to the strength of the Indian economy, reinforcing our commitment to providing accurate and timely updates.
NationPress
13/09/2025
Frequently Asked Questions
What led to the stock market's positive performance?
Optimism over a potential rate cut by the US Federal Reserve, favorable developments in India-US trade talks, and strong buying in defence stocks contributed to the positive market performance.
How did the Sensex and Nifty perform?
The Sensex closed at 81,904.70, up 355.97 points or 0.44 percent, while the Nifty finished at 25,114.0, gaining 108.50 points or 0.43 percent.
What sectors outperformed during this period?
The defence sector saw significant gains, along with the financial services, banking, and automotive sectors, which all experienced notable increases.
What is the outlook for the Indian Rupee?
The rupee is expected to recover some lost ground, with potential testing of 87.75 in the upcoming days, while 88.50 is seen as a resistance zone.
Are there any risks to this market trend?
Geopolitical uncertainties and global economic conditions remain potential risks that could affect market sentiment.
