Why Did the Stock Market Rise for the Third Day in a Row?
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Synopsis
The Indian equity indices have achieved a remarkable third consecutive day of gains, fueled by a surge in IT stocks following the recent U.S. Federal Reserve rate cut. With positive global sentiment driving the market, learn how various sectors performed and what this means for investors moving forward.
Key Takeaways
- Indian equity indices have gained for the third consecutive day.
- The U.S. Federal Reserve announced a rate cut of 25 basis points.
- IT stocks were the primary drivers of market gains.
- Broader indices also showed bullish trends.
- The rupee faced challenges despite a soft dollar index.
Mumbai, Sep 18 (NationPress) The Indian equity indices have continued their upward trajectory for the third consecutive day on Thursday, spurred by a surge in IT stocks following the U.S. Federal Reserve's announcement of a rate cut.
The Sensex concluded at 83,013.96, gaining 320.25 points or 0.39 percent.
Opening with a notable gap-up at 83,108.92, compared to the previous session's close of 82,693.71, the index remained relatively stable throughout the day, with a mixed performance across various sectors, except for IT.
The Nifty index wrapped up at 25,423.60, an increase of 93.35 points or 0.37 percent.
According to Ashika Institutional Equities, "Global equities traded positively following the U.S. Federal Reserve's decision to cut rates by 25 basis points to 4–4.25 percent, also indicating two more potential reductions this year to address rising job market challenges. Reflecting this positive global sentiment, Indian markets opened with a favorable gap and maintained a sideway movement during the first half of the day."
Notable gainers in the Sensex included Eternal, Sun Pharma, Infosys, HDFC Bank, PowerGrid, HCL Tech, ITC, Hindustan Unilever, Tata Steel, Axis Bank, and Bajaj FinServ. In contrast, Bajaj Finance, Tata Motors, Trent, Ultratech Cement, and Asian Paints faced declines.
Most sectoral indices remained in positive territory, driven by value buying. Nifty Fin Services soared 135 points or 0.51 percent, Nifty Bank rose 234 points or 0.42 percent, Nifty Auto increased 34 points or 0.13 percent, Nifty FMCG jumped 201 points or 0.36 percent, and Nifty IT surged 303 points or 0.83 percent.
Broader market indices continued their bullish trend, with buying interest in midcap and small-cap stocks. Nifty Small Cap 100 climbed 53 points or 0.29 percent, Nifty Midcap 100 rose 224 points or 0.38 percent, and Nifty 100 finished the session 91 points or 0.35 percent higher.
Despite the Dollar Index remaining soft post-Fed policy, the Rupee closed weaker by 0.26 at 88.09. Jateen Trivedi from LKP Securities commented, "The rupee struggled to gain ground as FII sentiment remained cautious, and the ongoing India-US trade discussions will serve as the next significant catalyst. Support for the rupee is observed near 87.75, while resistance is noted at 88.25."
Point of View
The current bullish trend in the Indian stock market reflects a mix of global influences and domestic sentiment. While the optimism surrounding IT stocks is notable, market participants should remain cautious as the economic landscape evolves. The interplay between international policies and local performance will be crucial for future market movements.
NationPress
20/09/2025
Frequently Asked Questions
What caused the recent rise in the stock market?
The stock market's rise was primarily driven by the U.S. Federal Reserve's announcement of a rate cut, which boosted investor sentiment, particularly in the IT sector.
How did the Sensex and Nifty perform?
The Sensex closed at 83,013.96, up 320.25 points, while the Nifty ended at 25,423.60, gaining 93.35 points.
What sectors contributed to the market gains?
The IT sector led the gains, along with positive performances from various sectors including financial services and FMCG.
What is the outlook for the rupee?
The rupee closed weaker at 88.09, with support seen at 87.75 and resistance at 88.25, as market sentiment remains cautious.
What should investors watch for next?
Investors should monitor ongoing India-US trade talks and global economic developments, as these could significantly impact market dynamics.
