Nifty Closes at Two-Month High; Small-Cap Gains Continue for 9th Day, PSU Banks Jump Over 2.5%

Market Update at 4:00 PM: On Wednesday, September 17, Indian equity benchmark indices ended in positive territory, extending the momentum from the previous session. The Nifty 50 closed at a two-month high, rising by 91.15 points, or 0.36 per cent, to Rs 25,330.25. The Sensex advanced by 313 points, or 0.38 per cent, to 82,693.71, supported by optimism over US trade talks and expectations of a Federal Reserve rate cut later in the day.

Public sector banks gained 2.61 per cent after M. Nagaraju, Secretary of the Department of Financial Services, clarified that the government has no plans to reduce its stake below 51 per cent. IT companies, which earn a significant portion of their revenue in USD, rose 0.65 per cent, emerging as the second-highest sectoral gainer.

On the sectoral front, eight of the 11 key sectoral indices ended in positive territory. Broader markets also performed well, with the Nifty Midcap 100 up 0.08 per cent and the Nifty Smallcap 100 rising 0.68 per cent, marking the 9th consecutive day of gains for Small-Cap stocks.

Among individual stocks, Bharat Electronics gained 2.31 per cent after securing an order worth Rs 712 crore. Mahindra Lifespaces advanced 3.65 per cent following redevelopment plans for two housing societies in Mumbai with a potential of Rs 1,700 crore. Premier Explosives surged 11.86 per cent after the Telangana Pollution Control Board lifted its closure order on the company’s factory in the state.

The Nifty PSU Bank index emerged as the top gainer, climbing 12.61 per cent with all 10 constituents advancing. On the other hand, the Nifty Metal index fell 0.5 per cent, with 11 of its 15 constituents ending in the red.

Key contributors to the Nifty 50’s gains included State Bank of India (+21.49 points), Reliance Industries (+11.51 points), and Kotak Mahindra Bank (+9.51 points). On the downside, ICICI Bank (-6.92 points), ITC Limited (-6.27 points), and Titan Company (-2.93 points) weighed on the index.

Market breadth favored advancing stocks, with 1,764 of the 3,177 NSE-listed stocks rising, 1,315 declining, and 98 unchanged. A total of 84 stocks touched their 52-week highs, while 24 hit their 52-week lows. Additionally, 107 stocks were locked in their upper circuits, and 52 stocks were in lower circuits, reflecting strong market participation across sectors, including Mid-Cap and Large-Cap stocks.

Market Update at 12:30 PM: The Indian equity market was seen trading higher in Wednesday’s intra-day session on expectations of an earlier-than-expected India-US trade deal.

On Tuesday, India and the US agreed to accelerate efforts for a ‘mutually beneficial’ trade agreement after a seven-hour meeting in New Delhi. The talks, held at Vanijya Bhawan, were led by Brendan Lynch, USTR assistant for South and Central Asia, and Rajesh Agrawal, special secretary in India’s commerce department.

At 12:00 PM, the BSE Sensex quoted around 82,694 levels, up 313 points or 0.38 per cent, while the NSE Nifty 50 was at 25,332 levels, gaining 93 points or 0.37 per cent.

Shares of Urban Company made their debut at Rs 161 per share on the BSE, listing at a premium of Rs 58 or 56.31 per cent over the issue price of Rs 103 per share. The IPO listing was broadly in line with expectations from the grey market.

Among Sensex 30 shares, Bharat Electronics (BEL) surged around 2.5 per cent and State Bank of India gained 1.5 per cent. Other visible movers included Maruti Suzuki, TCS, and UltraTech Cement, while Tata Steel and Titan slipped nearly 1 per cent.

In the broader market, the BSE MidCap index advanced 0.3 per cent and the SmallCap index gained 0.6 per cent during intra-day trades. Sector-wise, the Nifty PSU Bank index led the gains with a rise of 1.8 per cent. Strength was also visible in IT, capital goods, and realty stocks, which moved up in the range of 0.5–0.8 per cent each.

Market Update at 10:15 AM: India’s equity benchmarks inched higher at the opening on Wednesday, driven by optimism after New Delhi described its ongoing trade talks with the U.S. as “positive” and “forward-looking.”

The Nifty 50 added 0.15 per cent to 25,276.6, while the BSE Sensex rose 0.15 per cent to 82,506.4 as of 09:15 a.m. IST. Broad participation was seen across sectors, with all 16 major indices opening in the green. Small-cap and mid-cap stocks also gained momentum, with CNX Smallcap rising 0.4 per cent and Midcap up 0.3 per cent, reflecting positive investor sentiment.

The U.S. delegation of trade representatives met Indian officials in New Delhi on Tuesday. India’s commerce ministry said, “It was decided to intensify efforts to achieve early conclusion of a mutually beneficial Trade Agreement.” The development is expected to support large-cap and mid-cap stocks, including those with recent Quarterly Results, dividend announcements, or ongoing IPOs.

Meanwhile, investors are also awaiting the Federal Reserve’s policy decision later in the day. The US central bank is widely expected to cut rates by 25 basis points and signal further reductions in the remainder of the year. 

Pre-Market Update at 7:30 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.