Sensex settles 600 pts higher, Nifty at 2-month high on Fed rate cut, trade talks hopes; auto, realty shares rally

Sensex, Nifty rebound in September 16 trade. 

The benchmark indices rebounded sharply on Tuesday, driven by gains in auto and realty shares amid hopes of progress in India-US trade talks and expectations of a US Federal Reserve rate cut.

Sensex climbed 594.95 points or 0.73 percent to settle at 82,380.69, while the broader Nifty advanced 169.90 points or 0.68 percent to finish the trade at 25,239.10, marking its highest intraday level in two months.

Investor sentiment improved as discussions continued between India and the US on tariff-related issues. Brendan Lynch, Assistant US Trade Representative for South and Central Asia, is in New Delhi for talks. "If we get a trade agreement that removes the punitive tariffs, it could be a real shot in the arm for Indian markets," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Global cues also remained supportive ahead of the US Fed’s two-day policy meeting concluding on September 17. Markets are factoring in a 25-basis-point rate cut.

On the sectoral front, realty stocks extended gains for the third consecutive session. The Nifty Realty index rose 1 percent, led by Prestige Estates Projects, The Phoenix Mills, DLF, Anant Raj and Godrej Properties, which gained up to 2 percent.

Buying was also seen in auto, metal and financial stocks, which advanced up to 1 percent.

In contrast, FMCG shares were under pressure, with the Nifty FMCG index slipping 0.3 percent.

In the broader market, the Nifty Smallcap 100 surged 1.91 percent while the Nifty Midcap 100 added 0.6 percent.

GMR Airports and Persistent Systems were among the notable midcap gainers, rising up to 4 percent. In the smallcap segment, Redington and Godfrey Phillips India jumped up to 20 percent.

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