Nifty Drops After 8 Sessions of Gains, Sensex Ends 5-Day Rally; Realty Index Jumps 2.4%

Market Update at 4:00 PM: On Monday, September 15, Indian equity benchmark indices closed lower, snapping their recent winning runs. The Nifty 50 ended an 8-day winning streak, while the Sensex closed in the red after five straight sessions of gains. At the closing bell, the Nifty 50 declined 44.80 points, or 0.18 per cent, to settle at 25,069.20. The Sensex dropped 118.96 points, or 0.15 per cent, to end at 81,785.74, as investors awaited the U.S. Federal Reserve’s policy meeting.

The Nifty India Defence index rose 0.7 per cent, extending its rally from Friday. The move came after the Defence Ministry approved a new Defence Procurement Manual (DPM), which covers revenue procurements worth an estimated Rs 1 trillion (USD 11.34 billion) in the current fiscal year. The new manual also specifies a 0.1 per cent delay penalty after prototype development, capped at 5 per cent and extendable to 10 per cent in case of major delays.

On the sectoral front, 8 of the 11 key sectoral indices closed in positive territory. Broader indices also advanced, with the Nifty Midcap 100 gaining 0.44 per cent and the Nifty Smallcap 100 rising 0.76 per cent. RailTel Corporation surged 6.70 per cent after securing an order worth Rs 209.73 crore. Engineers India and Ceigall India gained over 1 per cent each on the back of fresh order wins. On the downside, KRBL plunged 9.6 per cent after one of its independent directors resigned, citing corporate governance issues.

The Nifty Realty index was the standout performer, climbing as much as 2.41 per cent, its biggest intraday gain in three months, with all 10 constituents closing higher. Despite today’s rally, the index remains down 14 per cent in 2025, underperforming the Nifty 50’s 6.1 per cent gain. In contrast, the Nifty Pharma index slipped 0.64 per cent, with 15 of its 20 constituents ending lower.

The top contributors to Nifty gains were Reliance Industries (+6.43 points), Bajaj Finance (+4.95 points), and Eternal (+3.37 points). On the other hand, Infosys (-13.59 points), Mahindra & Mahindra (-11.62 points), and Tata Consultancy Services (-4.71 points) pulled the index down.

The market breadth on September 15 was tilted towards advancing stocks. Out of 3,165 NSE-listed companies, 1,714 advanced, 1,357 declined, and 94 remained unchanged. A total of 91 stocks touched their 52-week highs, while 43 hit 52-week lows. Additionally, 129 stocks were locked in their upper circuits, whereas 32 were in lower circuits.

Market Update at 12:45 PM: Indian benchmark equity indices traded cautiously on Monday with limited movement. At 12 PM, the BSE Sensex was at 81,934.04, up by 29.34 points or 0.04 per cent, while the NSE Nifty50 was almost unchanged at 25,114.10, adding just 0.10 points.

In stock-specific action, companies such as Eternal, Hero MotoCorp, Bajaj Auto, Bajaj Finance, Bharat Electronics, Adani Ports, Tata Motors, NTPC, Power Grid, and Hindalco emerged as the Top Gainers, advancing up to 0.8 per cent. On the other hand, Dr Reddy's Laboratories, Sun Pharma, Infosys, Shriram Finance, HDFC Life, Cipla, SBI Life, Wipro, and Asian Paints were the major laggards, declining as much as 1.6 per cent.

The broader market showed stronger momentum as investors actively participated in Small-Cap and Mid-Cap counters. The Nifty MidCap index rose 0.18 per cent, while the Nifty SmallCap index gained 0.42 per cent, reflecting increased investor interest in smaller companies that often deliver multibagger returns in the long run.

Among sectoral indices, the Nifty Realty index was the top performer, climbing 0.92 per cent, indicating positive sentiment around real estate stocks amid expectations of steady Quarterly Results and potential announcements like bonus shares or dividend payouts in the near term. On the downside, the Nifty IT index fell 0.74 per cent, dragged down by weakness in Large-Cap IT companies such as Infosys and Wipro.

Market Update at 10:30 AM: India’s equity benchmarks started Monday on a muted note, mirroring the cautious sentiment across Asian peers. Investors are awaiting the U.S. Federal Reserve meeting this week, where policymakers are widely expected to resume the easing cycle with a potential interest rate cut.

India’s retail inflation accelerated to 2.07 per cent in August, but it remained well within the Reserve Bank of India’s tolerance band. This gives the central bank space for another rate cut later this year, which could provide further support to equity markets, including large-cap, mid-cap and small-cap stocks.

At 09:15 a.m. IST, the Nifty 50 index was up 0.02 per cent at 25,118.9, while the BSE Sensex rose 0.03 per cent to 81,925.51. Among the sectoral indices, 12 out of 16 opened higher, though gains were limited. The broader small-cap and mid-cap indices added about 0.2 per cent each.

Globally, Asian equities opened quietly, reflecting investor caution before the Fed decision. Markets are watching whether the central bank signals a series of rate cuts, which could impact foreign capital inflows, IPO momentum, and even valuations of companies declaring quarterly results or dividend payouts.

Last week, the Nifty 50 climbed 1.5 per cent, recording an eight-session winning streak. The rally was supported by growing expectations of a Fed rate cut, optimism over U.S.-India trade talks, and the Indian government’s tax measures aimed at boosting consumption.

Pre-Market Update at 7:30 AM: On Monday, September 15, Indian benchmark indices, the Sensex and Nifty 50, are expected to open lower, tracking mixed cues from global markets. As of 7:12 AM, the GIFT Nifty was trading at 25,165, down 48 points.

India’s retail inflation rose for the first time since October 2024. Consumer Price Index (CPI)-based inflation increased 2.07 per cent year-on-year in August, compared to a revised 1.61 per cent in July, earlier estimated at 1.55 per cent. This data will remain a key factor for investors alongside developments related to the India-US trade deal, India-EU trade deal, the US Federal Reserve’s policy meeting, and flow of foreign institutional funds.

On Friday, September 12, Foreign Institutional Investors (FIIs) were net buyers, purchasing equities worth Rs 129.58 crore. Domestic Institutional Investors (DIIs) also remained buyers, with inflows worth Rs 1,556.02 crore, marking their 14th consecutive session of net buying. Such inflows have supported large-cap and mid-cap counters, while investors continue to track opportunities in small-cap and IPO segments.

On Friday, Indian markets closed higher, with the Nifty 50 finishing above the 25,100 mark. The Sensex advanced 355.97 points or 0.44 per cent to 81,904.70, while the Nifty 50 gained 108.50 points or 0.43 per cent to end at 25,114.00.

US markets ended mixed on Friday. The Dow Jones Industrial Average slipped 0.59 per cent to 45,834.22, while the S&P 500 edged down 0.05 per cent to 6,584.29. The Nasdaq gained 0.45 per cent to 22,141.10, marking a record high close. Over the week, the S&P 500 rose 1.6 per cent, the Dow gained nearly 1 per cent, and the Nasdaq jumped 2 per cent. In Asia, equity markets traded mostly higher in early Monday trade, offering some support to sentiment.

The University of Michigan reported a fall in consumer sentiment for the second consecutive month, with the index at 55.4 in September compared to 58.2 in August, the lowest since May. Inflation expectations for the next year remained unchanged at 4.8 per cent, while the five-year outlook rose to 3.9 per cent from 3.5 per cent.

Gold prices stayed near record highs ahead of the US Federal Reserve’s policy outcome. Spot gold was quoted at USD 3,636.73 per ounce, while US gold futures for December fell 0.2 per cent to USD 3,673.60. Crude oil prices inched higher as Ukrainian drone strikes on Russian refining facilities raised supply concerns. Brent crude futures were up 0.18 per cent at USD 67.11 per barrel, while West Texas Intermediate (WTI) advanced 0.22 per cent to USD 62.83 per barrel.

For today, RBL Bank, HFCL 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.