Nifty snaps 8-day winning streak, broader markets outperform ahead of US Fed policy

Sensex, Nifty pause rally; Realty leads, autos lag

Indian benchmark indices Sensex and Nifty took a breather on September 15, snapping the winning streak D-Street enjoyed last week. Volatility edged higher as India VIX climbed nearly 3 percent, signaling choppy near-term moves. All eyes are now on the US Federal Reserve’s policy decision due Wednesday, where traders have largely priced in a 25 bps rate cut.

At close, the Sensex slipped 118.96 points, or 0.15 percent, to 81,785.74, while the Nifty shed 44.80 points, or 0.18 percent, to 25,069.20. Market breadth remained positive with 2,052 shares advancing, 1,756 declining, and 163 ending unchanged.

Broader markets, however, outperformed. Both the Nifty Midcap 100 and Nifty Smallcap 100 indices gained up to 0.7 percent, extending their relative strength against benchmarks.

Sectorally, realty stocks stole the show, with the Nifty Realty index surging over 2.5 percent on strong gains in DLF, Lodha Developers, and Prestige Estates. Defence and PSU banks also found firm footing, drawing investor attention.

On the downside, the Nifty Auto index slipped into negative territory, breaking its two-day run of gains. IT and pharma stocks also ended weaker, each losing over 0.5 percent.

On the flipside, Nifty Auto index slipped into the negative territory, snapping 2-day bull run on September 15. Additionally, IT and pharma stocks also ended the day in the red, slipping over 0.5 percent each.

On the economic front, India’s wholesale price inflation rose to a four-month high of 0.52 percent in August, compared with -0.58 percent in July. The uptick was driven by higher food and manufacturing product prices.

Investors are expected to closely track the outcome of the Fed meeting on September 17, progress in US–India trade negotiations, and FII flows through the week.

From a fundamental standpoint, earnings are projected to pick up from Q3 FY26 and accelerate in FY27, with growth seen above 15 percent. On the technical side, short covering could lend support to the rally, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

He added that investors should focus on sectors with strong earnings visibility—automobiles, white goods, healthcare, cement, and hotels—while capital goods, telecom, jewellery, and digital plays are also well-positioned. However, caution is warranted in small caps, where valuations remain stretched.