Nifty and Sensex Close at Two-Month High; Nifty Ends Above 25,200 with Nifty Auto Leading Gains

Market Update at 4:00 PM: On Tuesday, September 16, Indian equity benchmark indices closed in positive territory, supported by strong market momentum. The Nifty 50 ended up by 169.90 points, or 0.68 per cent, at 25,239.10, forming a strong green marubozu candle near a two-month high. The Sensex jumped 954.95 points, or 0.73 per cent, to close at 82,380.69, as investors awaited cues from the US Federal Reserve's upcoming policy meeting.

Energy stocks gained 0.89 per cent, marking a fifth consecutive session of gains, driven by government support for oil marketing companies and steady fuel demand that could boost Quarterly Results. On the sectoral front, 10 of the 11 key indices ended higher. Broader markets also performed well, with the Nifty Midcap 100 up 0.54 per cent and the Nifty Smallcap 100 closing 0.95 per cent higher.

Among individual stocks, NTPC Green advanced 1.73 per cent as its joint venture with Ircon International nears full capacity. Redington hit the 20 per cent upper circuit on strong pre-order sales of iPhone 17, while Vodafone Idea fell 2.46 per cent ahead of a Supreme Court hearing this week. 

Larsen & Toubro shares rose 2.28 per cent to a one-month high after its Heavy Civil Infrastructure vertical secured a significant order from the Nuclear Power Corporation of India (NPCIL). Textile stocks like KPR Mill and Raymond surged up to 7 per cent amid optimism around the resumption of US-India trade talks.

The Nifty Auto index emerged as the top gainer of the day, rising 1.44 per cent with all 15 constituents advancing. In contrast, the Nifty FMCG index declined 0.27 per cent, with 9 of its 15 constituents ending lower.

Key contributors to Nifty 50 gains included Bharti Airtel (+22.55 points), Larsen & Toubro (+21.71 points), and Kotak Mahindra Bank (+17.10 points). Stocks that weighed on the index were HDFC Bank (-2.52 points), Asian Paints (-2.06 points), and Bajaj Finance (-1.73 points).

Market breadth was positive, with 2,005 stocks advancing, 1,059 declining, and 94 remaining unchanged on the NSE. A total of 91 stocks touched their 52-week highs, while 21 hit 52-week lows. Additionally, 117 stocks were locked in their upper circuits, and 41 were in lower circuits.

Market Update at 12:30 PM: Indian stock markets were trading higher on Tuesday as investors remained cautious ahead of the US Federal Reserve’s monetary policy outcome, which is scheduled to be announced on Wednesday, September 17.

Market participants are also closely watching the meeting between chief negotiators from India and the United States (US), expected to be held today, for stock-taking discussions on the proposed bilateral trade agreement (BTA).

At 12 PM, the BSE Sensex was up by 334 points or 0.41 per cent, trading at 82,119.52. The NSE Nifty 50 also moved higher by 97.30 points or 0.39 per cent to 25,166.50. The gains in the benchmark indices were largely supported by select Large-Cap stocks.

Top Sensex gainers during the session included M&M, Kotak Bank, L&T, Adani Ports, Bajaj Finserv, Ultratech Cement, Axis Bank, Bharti Airtel, NTPC, and Maruti Suzuki, which advanced up to 1.5 per cent. On the other hand, Asian Paints, Titan Company, HDFC Bank, HCL Tech, HUL, and SBI were among the Top Losers, declining between 0.08 per cent and 0.45 per cent.

In the broader market, the Nifty MidCap index added 0.31 per cent, while the Nifty SmallCap index advanced 0.73 per cent. Investors continue to look for potential multibagger opportunities in select Small-Cap and Mid-Cap counters, especially ahead of upcoming quarterly results and corporate actions such as dividend announcements, right issues, and bonus issues.

Sector-wise, the Nifty Auto index led the gains with an uptick of 0.5 per cent, supported by strong buying interest in auto stocks. Meanwhile, the Nifty PSU Bank index slipped 0.07 per cent, emerging as the top sectoral laggard.

Market Update at 10:30 AM: India’s stock benchmarks opened marginally higher on Tuesday, supported by optimism over progress in US-India trade negotiations and ahead of the Federal Reserve’s upcoming rate decision.

The Nifty 50 added 0.17 per cent to 25,110.75, while the BSE Sensex rose 0.2 per cent to 81,956.51 as of 09:28 a.m. IST. Thirteen of the 16 major sectors advanced at the open, though gains were largely modest. The broader market also showed improvement, with the Smallcap index up about 0.5 per cent and the  Midcap index rising 0.2 per cent.

Investors are positioning for a potential Fed rate cut on Wednesday, which could weaken the USD and attract flows into emerging markets such as India.

The market optimism comes ahead of scheduled trade talks between India and the US, aimed at resolving issues after the US imposed punitive tariffs on New Delhi for buying Russian oil. A breakthrough in these talks could positively impact large-cap and mid-cap stocks, while small-cap and dividend-paying companies may also benefit from increased investor confidence.

Meanwhile, in a related development, US and Chinese officials announced a framework agreement to shift control of short-video app TikTok to US ownership. The arrangement is expected to be confirmed during a Friday call between US President Donald Trump and Chinese President Xi Jinping, easing concerns in global markets.

Pre-Market Update at 7:30 AM: On Tuesday, September 16, the Indian equity market benchmarks, the Sensex and Nifty 50, are expected to open lower with caution. India is set to resume trade discussions with the US, with Washington’s chief negotiator Brendan Lynch scheduled to meet Rajesh Agrawal, special secretary in the commerce department, to advance bilateral trade negotiations.

As of 7:12 AM, the GIFT Nifty was trading near 25,161, down 19 points, reflecting a muted start. The Federal Open Market Committee (FOMC) is widely expected to cut interest rates by 25 basis points during its meeting on September 16–17. Asian markets traded mixed, while US markets closed higher on Monday.

On Monday, September 15, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 1,268.59 crore. In contrast, Domestic Institutional Investors (DIIs) remained net buyers for the 15th straight session, purchasing shares worth Rs 1,933.33 crore.

The Indian equity market closed weaker on September 15, ending a winning streak. The BSE Sensex declined by 119 points, or 0.15 per cent, to 81,786, while the NSE Nifty 50 slipped 45 points, or 0.18 per cent, to 25,069, falling below the 25,100 mark. The correction came as investors awaited signals from the Federal Reserve’s policy outcome. India’s unemployment rate eased to 5.1 per cent in August, down from 5.2 per cent in July and 5.6 per cent in June, as per the Periodic Labour Force Survey (PLFS).

On Monday, US markets closed higher with the S&P 500 and Nasdaq hitting record intraday levels. The Dow Jones Industrial Average added 49.23 points, or 0.11 per cent, to 45,883.45. The S&P 500 gained 30.99 points, or 0.47 per cent, to 6,615.28, while the Nasdaq advanced 207.65 points, or 0.94 per cent, to 22,348.75. Investors are now focused on the FOMC meeting, with rising expectations of a 25-basis-point rate cut amid labor market concerns. US President Donald Trump also said trade talks with China had “gone very well” and hinted at a potential deal addressing US concerns over TikTok’s ownership.

Gold hovered near record levels at around USD 3,670 per ounce ahead of the Fed’s meeting. Crude oil prices stayed firm, with Brent futures trading near USD 67.5 per barrel and WTI around USD 63.3 per barrel, supported by concerns over supply disruptions from Ukrainian strikes on Russian infrastructure and increased US pressure on buyers of Russian crude.

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.