Image Source: Mint
As of 2.50 pm IST on September 18, India’s benchmark Nifty 50 index was trading up by 0.2 percent, continuing its upward trajectory for the third consecutive session. The index hovered around the 25,350 mark, buoyed by a combination of global cues, domestic policy support, and sectoral resilience. The broader market sentiment remained upbeat, with investors responding positively to the US Federal Reserve’s rate cut and signs of progress in India-US trade negotiations.
The rally was led by technology and pharmaceutical stocks, while banking, auto, and FMCG sectors posted steady gains. Metals remained the only laggard, slipping into negative territory. The India VIX, a measure of market volatility, was down 2 percent, indicating a relatively stable trading environment.
Key Highlights From Today’s Market Movement
- Nifty 50 index rose 0.2 percent, trading above 25,350 as of 2.50 pm IST
- Sensex climbed over 150 points, supported by gains in IT and pharma stocks
- India VIX declined by 2 percent, reflecting lower intraday volatility
- Most sectoral indices traded in the green, with metals being the sole underperformer
- Investor sentiment was lifted by the US Fed’s 0.25 percent rate cut and recent GST reforms
Sectoral Trends And Stock Performances
Technology stocks outperformed across the board, with major players like Infosys, TCS, and HCL Tech posting intraday gains between 1.5 to 2.3 percent. The pharma sector also saw renewed interest, driven by expectations of export growth and regulatory tailwinds. Sun Pharma and Dr. Reddy’s Laboratories led the charge, each gaining over 1.8 percent.
Banking stocks remained stable, with ICICI Bank and Axis Bank showing modest gains. FMCG counters such as Hindustan Unilever and Nestle India posted intraday increases of over 1.2 percent, supported by strong rural demand indicators.
Auto stocks, including Bajaj Auto and Tata Motors, saw mild upticks, while metal stocks such as Tata Steel and Hindalco slipped marginally, weighed down by global commodity price pressures.
Global Cues And Policy Support
The US Federal Reserve’s decision to cut interest rates by 25 basis points was a key driver of today’s rally. The move is seen as an effort to stabilize the US labor market and support broader economic growth. Indian markets responded positively, with foreign institutional investors showing renewed interest in domestic equities.
Additionally, recent progress in India-US trade negotiations has added to investor confidence. Reports of constructive dialogue between trade representatives have raised hopes of tariff relief and expanded market access for Indian exporters.
On the domestic front, the government’s announcement of streamlined GST compliance measures and incentives for manufacturing sectors has further bolstered sentiment. These reforms are expected to improve ease of doing business and attract fresh capital inflows.
Broader Market Indicators
The Nifty Midcap 100 and Smallcap 100 indices extended their winning streak, rising 0.54 percent and 0.95 percent respectively. This reflects strong participation from retail and institutional investors in mid-tier and emerging companies.
Among notable movers, Embassy Developments surged over 5.5 percent, while NHPC and Sammaan Capital posted gains exceeding 2 percent. On the downside, Canara Bank and Davangere Sugar Company saw intraday declines of over 1 percent.
Outlook For The Coming Sessions
With the Nifty sustaining levels above 25,200, analysts expect the index to test the 25,500 zone in the near term. However, any breach below 24,950 could trigger short-term consolidation. Market participants will closely watch upcoming macroeconomic data, corporate earnings, and global central bank commentary for further cues.
The overall tone remains cautiously optimistic, with traders advised to maintain a balanced portfolio and monitor sectoral rotations. Defensive sectors like FMCG and pharma may continue to attract interest, while cyclical plays could see selective profit booking.
Sources: Reuters, Economic Times, Moneycontrol, NSE India Live Market Data
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