Sensex, Nifty end at record closing highs as telecom, auto stocks lead; Fed meet in focus

In broader markets, BSE Midcap and Smallcap indices remained flat, underperforming the benchmarks.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Sensex and Nifty ended September 17 at record closing highs, ahead of the highly anticipated US Federal Reserve's September 17-18 FOMC meeting. Gains in telecom, auto, and construction stocks led the recovery, while metal stocks lagged.

At close, the Sensex rose 80 points or 0.1 percent to 83,068, and the Nifty added 34 points, settling at 25,418.50. Market breadth was negative, with 1,616 stocks advancing, 2,176 declining, and 99 remaining unchanged.

"The Indian market exhibited a subtle positive momentum, driven by the anticipation of a rate cut cycle by the US Fed. Although a 25-bps cut is largely factored in, the market remains attuned to the Fed's comments on the health of the economy and the future trajectory of rate cuts," said Vinod Nair, Head of Research, Geojit Financial Services.

ICICI Securities echoed a similar sentiment, saying,  "With prospects of rate cuts in the US, we expect FII money returning to EM (emerging markets) and India stands to benefit significantly. This is incrementally positive with already robust domestic liquidity."

Follow our live blog for all the market action

According to CME's FedWatch Tool, there is now a 67 percent probability of a 50-basis-point cut.

Sector-wise, Nifty Auto, Infra, and Realty led the gains, rising 0.2-0.6 percent, while Nifty Metal cooled off after a three-day rally and fell by 0.4 percent. September 17 marked the fourth day of gain for the auto index.

In the Nifty 50 index, top gainers included M&M, NTPC, Bharti Airtel, Bajaj Auto, and Hero MotoCorp which gained 1-3 percent. Meanwhile, Tata Steel, Coal India, Adani Ports, Eicher Motors, and Tata Motors lagged, each falling by a percent.

Bajaj Auto shares rose over 3 percent and hit a 52-week high of 5,984.95 amid heavy volumes. Bajaj Auto gained over 2 percent. The company launched two new motorcycles in the 400 cc category - the Triumph Speed T4, and MY25 Speed 400.

In broader markets, BSE Midcap and Smallcap indices remained flat, underperforming the benchmarks.

Also Read | Ola Electric share price jumps 10% to hit upper circuit after BofA, Goldman Sachs initiate with 'buy' call

Later today, US retail sales data will provide insights into consumer health ahead of the Fed meeting, while India’s wholesale price data for August is also in focus.

Investors remain focused on the outcome of the upcoming September 17-18 FOMC meeting. "A 25 basis point cut is already priced into the markets," Gaurang Shah, Senior Vice President at Geojit Financial Services told Moneycontro. Shah said that if the Fed goes for a 50 basis point cut, there will likely be euphoria in the US markets, which will spill over into global and our markets. "In such a case, hitting 25,600 (for Nifty 50) is very possible."

However,  Vijayakumar cautioned that while rate cuts are generally positive for markets, "If the incoming data signals a sharply slowing economy and the Fed cuts by 50 bp the market is unlikely to treat it as positive. It is possible that the market may take it as a signal of the US economy tipping into recession and, therefore, the response need not be positive."

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.