Sensex rises for 2nd day, Nifty reclaims 25,300 ahead of US Fed policy outcome

Nifty reclaims 25,300 as trade optimism boosts sentiment

Indian benchmark indices Sensex and Nifty extended their rally into a second straight session on September 17, as encouraging signals from India–US trade talks rekindled buying interest across sectors. In a key milestone, the Nifty crossed the 25,300 mark for the first time since July 11. Investor focus now shifts squarely to the US Federal Reserve’s policy outcome later tonight, with markets widely pricing in a 25 basis point rate cut.

Around morning, the Sensex climbed 253.74 points, or 0.31 percent, to 82,634.43, while the Nifty gained 77 points, or 0.31 percent, to 25,316.10. Market breadth was strong, with 2,298 stocks advancing, 759 declining, and 156 remaining unchanged.

Catch all the market action on our LIVE blog

Broader markets also mirrored the positive sentiment, with the Nifty Midcap 100 and Nifty Smallcap 100 indices climbing up to 0.3 percent in early trade. Meanwhile, India VIX — the volatility gauge — edged higher but stayed at comfortable levels, suggesting no immediate signs of panic.

On the sectoral front, pharma stocks weighed on the benchmarks, with Nifty Pharma dragging due to losses in Lupin, Glenmark Pharma, and Divi’s Laboratories.

However, auto stocks continued to lead the charge, sustaining their momentum from earlier sessions, while IT counters also saw renewed traction ahead of the Fed policy. Analysts noted that Indian IT services firms often benefit when a US rate easing cycle supports global growth.

Shrikant Chouhan, Head of Equity Research at Kotak Securities, said the market’s bias remains upward as long as key support zones are intact.

“The Nifty and Sensex are likely to extend their gains as long as they hold above 25,100 and 82,000, with upside targets at 25,400/82,800 and potentially 25,500/83,100. A slip below 25,100/82,000, however, could shift sentiment negative, dragging indices toward 25,000/81,700 levels,” he explained.

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.