Nifty and Sensex to Open Higher on US-India Trade Talks and Fed Rate Cut Hopes

Pre-Market Update at 7:45 AM: On Wednesday, September 17, Indian equity benchmark indices Sensex and Nifty 50 are set to open higher, supported by optimism around India–US trade talks and expectations of a US Federal Reserve rate cut. At 7:17 AM, the GIFT Nifty was trading near 25,380, down 43 points.

India and the US described their bilateral trade discussions between Chief US negotiator Brendan Lynch and Rajesh Agrawal, Special Secretary in the Department of Commerce, as “positive and forward-looking.” Both nations agreed to intensify efforts to finalise a mutually beneficial agreement at the earliest.

On Tuesday, September 16, Foreign Institutional Investors (FIIs) were net buyers of equities worth Rs 308.32 crore. Domestic Institutional Investors (DIIs) also bought shares worth Rs 1,518.73 crore, marking their 16th consecutive session as net buyers.

The Nifty 50 closed 0.68 per cent higher at 25,239.10, while the Sensex gained 595 points, or 0.73 per cent, to end at 82,380.69. The Bank Nifty settled at 55,147.60, up 0.47 per cent. Sectoral indices like realty, IT, auto, metals, oil & gas, and consumer durables advanced, while FMCG remained subdued. Mid-Cap and Small-Cap indices also gained between 0.54 and 0.95 per cent.

Wall Street closed lower on Tuesday as investors awaited the outcome of the Federal Open Market Committee (FOMC) meeting. The Fed is widely expected to cut interest rates by 25 basis points. The Dow Jones Industrial Average fell 125.55 points (0.27 per cent) to 45,757.90, the S&P 500 slipped 8.52 points (0.13 per cent) to 6,606.76, and the Nasdaq Composite declined 14.79 points (0.07 per cent) to 22,333.96. Despite the dip, US markets remain in positive territory for September.

China termed the tentative TikTok ownership deal with the US as a “win-win” and confirmed it would review related technology and licensing issues. US retail sales rose 0.6 per cent in August, while industrial production advanced 0.2 per cent.

Gold prices edged 0.1 per cent higher to USD 3,694.54 per ounce ahead of the Fed decision. Brent crude futures traded at USD 68.4 per barrel, and WTI crude at USD 64.5 per barrel. The US dollar index weakened 0.714 per cent to 96.653, its lowest level since July 1.

For today, RBL Bank, HFCL, Angel One and Oracle Financial Services Software will remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.