Will Sensex and Nifty Rise on Hopes of Fed Rate Cut and Progress in India-US Trade Talks?
Click to start listening
Synopsis
In a promising start to the day, Indian benchmarks Sensex and Nifty opened higher, driven by expectations of a Fed rate cut and positive developments in India-US trade negotiations. Discover how these factors are influencing market trends and investor sentiment.
Key Takeaways
- Sensex up 151 points to 82,532.
- Nifty rises 58 points to 25,297.
- Positive developments in India-US trade negotiations.
- Anticipation of a Fed rate cut.
- Sectoral gains led by Nifty IT, Nifty Realty, and Nifty Oil and Gas.
Mumbai, Sep 17 (NationPress) The Indian benchmark indices opened on a positive note on Wednesday, driven by optimism surrounding a potential Fed rate cut this evening and favorable signals regarding the renewed India-US trade discussions.
At 9:28 AM, the Sensex gained 151 points, marking a rise of 0.18 percent to reach 82,532, while the Nifty increased by 58 points or 0.23 percent, settling at 25,297.
The broader market indices outperformed the benchmarks, with the Nifty Midcap 100 seeing a rise of 0.28 percent and the Nifty Small Cap 100 climbing by 0.60 percent.
Among the major gainers on the Nifty were Tata Consumer Products (up 2.65 percent), Tata Motors, Trent, NTPC, and ONGC, while Bajaj Finance, Cipla, ICICI Bank, and Tech Mahindra faced losses.
In sector performance, Nifty IT emerged as the top performer, soaring by 0.91 percent. Other significant gainers included Nifty Realty (up 0.52 percent) and Nifty Oil and Gas (up 0.43 percent). All sectors, except Nifty Metal (down 0.07 percent) and Nifty Pharma, were trading positively.
From a technical standpoint, Nifty has moved above its essential short-term averages. Analysts noted that immediate support for the Nifty has shifted to the 25,000 level, with resistance anticipated between 25,420 and 25,500.
The markets are factoring in a 25-basis-point cut at the end of the two-day Federal Open Market Committee (FOMC) meeting on Wednesday, a response to recent economic data indicating labor market challenges.
Traders will closely analyze the accompanying statements and officials’ economic projections for insights into future rate directions.
A delegation from the US trade representative, led by Chief Negotiator Brendan Lynch, met with officials from the Indian Commerce Department on Tuesday to progress discussions regarding the India-US Bilateral Trade Agreement (BTA).
The discussions were characterized as positive and forward-looking, with both parties committed to accelerating efforts toward a mutually advantageous trade agreement.
Meanwhile, major US indices experienced slight declines overnight, with the Nasdaq dipping 0.08 percent, the S&P 500 down 0.13 percent, and the Dow slipping 0.27 percent.
Most Asian markets showed strong gains in the morning session. The Shanghai index in China advanced 0.41 percent, Shenzhen surged 1.02 percent, Japan's Nikkei rose 0.23 percent, and Hong Kong's Hang Seng Index increased by 1.23 percent. However, South Korea's Kospi experienced a dip of 0.94 percent.
On Tuesday, foreign institutional investors (FIIs) purchased equities worth Rs 308 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 1,518 crore.
Point of View
The current optimism in the markets reflects both global economic conditions and local policy dialogues. The alignment of interests between India and the US in trade negotiations is pivotal for sustainable growth. Therefore, while we celebrate these gains, it is crucial to remain vigilant regarding external economic indicators.
NationPress
20/09/2025
Frequently Asked Questions
What are the current levels of Sensex and Nifty?
As of 9:28 AM, the Sensex is at 82,532, up by 151 points, and the Nifty is at 25,297, up by 58 points.
What influenced the market's upward trend today?
The markets opened higher due to expectations of a potential Fed rate cut and favorable signals from India-US trade negotiations.
Which sectors are performing well today?
Notably, the Nifty IT sector has gained 0.91 percent, alongside positive movements in Nifty Realty and Nifty Oil and Gas.
What are analysts saying about the Nifty's technical position?
Analysts suggest that Nifty is above key near-term averages, with immediate support around the 25,000 level and resistance between 25,420 and 25,500.
How did foreign institutional investors react yesterday?
On Tuesday, FIIs purchased equities worth Rs 308 crore, indicating a positive sentiment towards the market.
