Sensex and Nifty 50 Soar for Second Straight Day Fueled by India-US Trade Breakthroughs and Fed Rate Cut Optimism
Indian markets charge ahead as trade tensions ease and central bank dovishness fuels risk appetite.
Trading floors buzz with bullish energy as diplomatic progress meets monetary policy tailwinds. The dual catalysts—trade negotiations showing concrete movement and Fed signals pointing toward accommodation—create perfect conditions for extended rallies.
Institutional money flows back into emerging markets while retail traders chase momentum. The classic 'risk-on' playbook unfolds across sectors, though financials and exporters lead the charge.
Market veterans note the unusual synchronization of geopolitical and monetary drivers—a combination that typically delivers sustained upside. Short sellers retreat as momentum builds, creating that self-reinforcing cycle markets love so much.
Because nothing makes investors forget about valuations quite like the prospect of cheaper money and trade peace. The age-old recipe: mix liquidity hopes with diplomatic smiles, serve hot.
Also read
US Fed rate cut: How 25-50 bps cut will impact Indian stock market?
Meanwhile, Ashika Institutional Equities, stressed that the market maintained a positive undertone but lacked strong triggers as investors awaiting further clarity from global trade developments and key macroeconomic cues.
The Nifty 50 ROSE by 91.15 pts or 0.36 per cent to 25,330.25, and BSE Sensex gained 313.02 pts or 0.38 per cent to close at 82,693.71 — closing at two-month highest levels. With this uptick, the Nifty has posted gains in ten of the past eleven sessions.
Smallcaps outperformed advancing 0.7 per cent, while the mid-caps rose nearly 0.1 per cent. India VIX stayed subdued around 10.25.
Top movers today
On the sectoral front, PSU banks emerged as the top performer with a strong gain of 2.61 per cent, followed by defence index which closed nearly 2 per cent higher. IT, auto and oil & gas were among few other indices that settled with marginal gains.
The bank nifty closed the day at 55,493, adding over 346 pts and extending its pullback rally. Unlike Nifty, the index has been recovering from a deeper corrective phase and a higher high formation in the last 6 trading sessions, shows strong follow-up buying interest, Sudeep Shah, Head - Technical Research and Derivatives at SBI Securities, said.
On the flip side, metals, consumer durables, FMCGs and pharma witnessed profit-booking and underperformed the broader indices.
Also read
Markets surge as Nifty tops 25,300 mark; Sensex up 360 pts led by PSU banks, defence & auto stocks
Among the Sensex pack, Tata Consumer Products, Stata Bank of India, Bharat Electronics, Kotak Mahindra Bank and Maruti emerged as major gainers. HDFC Life, Bajaj Finserv, Titan, Hindalco, ITC and Tata Steel emerged as major laggards.
Bank of Maharashtra, PBN, SBI, Canara Bank and Bank of Baroda led the gainers of Nifty PSU bank index.
Market experts believe that the prospects of a 25 bps cut by the US Federal Reserve later today buoyed IT stocks.
Midcap & smallcap movers
KPIT Tech, Bank of Maharashtra, Aditya Birla Fashion, Cochin Shipyard and Kalyan Jewellers soared 3-4 per cent under the mid-cap segment, while Vodafone Idea, Supreme Industries, Aditya Birla Capital, NHPC and Glenmark declined nearly 2 per cent.
Defence stocks such as GRSE, Zen Tech and Data Patterns soared 4-6 per cent among the smallcap segment. While, Welspun Corp, Godfrey Phillips, Devyani International, Hindustan Copper and HFCL dropped by 1.5-2 per cent.
In addition, three mainboard IPOs, including Urban Company, debuted on the exchanges with robust listing gains, reflecting strong investor interest in niche midcap companies.
A total of 4,328 stocks were traded, on the BSE, of which 2,408 stocks advanced, 1,746 stocks declined and 174 remained unchanged. During this session, 162 stocks such as Manappuram, JSW Steel, Hyundai, Amber and izmo, scaled to their 52-week high, while 53 stocks hit their 52-week low. Eight stocks were locked in the upper circuit, whereas 7 stocks were locked in the lower circuit.
On the BSE, DCM Shriram, PC Jeweller, Dhani Services, Welspun Enterprises and Banco Products rallied 8-10 per cent, while KIOCL and Moschip depreciated by 5 per cent.
Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services, expects the market to continue its gradual up-move, backed by progress in India-US trade talks, potential global liquidity boost by the US Fed rate cut and renewed buying momentum driven by positive sectoral cues.
Also read
US Fed rate cut: How 25-50 bps cut will impact Indian stock market?
Geojit’s Nair added that the stable rupee added to investor confidence, while global markets traded cautiously ahead of the US Fed’s FOMC decision.
Global markets
Asian markets: Shanghai’s SSE Composite index and Hong Kong’s Hang Seng ended positive while South Korea’s Kospi and Japan’s Nikkei 225 index declined.
The Wall Street ended lower on Tuesday.
FIIs bought equities worth ₹308.32 crore, exchange data show.
On Tuesday, Sensex zoomed 594.95 pts or 0.73 per cent to 82,380.69 and Nifty climbed 169.90 pts or 0.68 per cent to 25,239.10.
Published on September 17, 2025
Companies to follow- Tata Consultancy Services Ltd
- Tata Consumer Products Ltd
- State Bank of India
- Kotak Mahindra Bank Ltd
- Maruti Suzuki India Ltd
- HDFC Life Insurance Company Ltd
- Bajaj Finserv Ltd
- Hindalco Industries Ltd
- ITC Ltd
- Tata Steel Ltd
