Sensex surges 200 pts, Nifty above 25,100 led by auto, metal stocks; All eyes on India-US trade talks

Nifty hovers above 25,100 as autos, metals drive rally

Indian benchmark indices Sensex and Nifty started the day on a positive note on September 16 amidst positive global cues. The momentum was broad-based, with buying seen across sectors, particularly in IT, metals, and autos.

Around morning, the Sensex had climbed 215.83 points, or 0.26 percent, to trade at 82,001.57, while the Nifty gained 60.35 points, or 0.24 percent, to stand at 25,129.55. Market breadth was firmly in favor of the bulls, with 2,276 stocks advancing against 750 declining and 178 remaining unchanged.

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The broader markets continued to outshine the benchmarks, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices advancing as much as 0.6 percent in the noon trade. Meanwhile, India VIX, the volatility gauge, cooled by 0.6 percent, reflecting lower near-term risk perception.

From the sectoral front, Nifty Auto stole the spotlight, rising close to one percent on the back of strong moves in M&M, Maruti Suzuki, Tata Motors, Bajaj Auto, and Hyundai Motor. Metal and pharma counters also joined the rally, lending further strength to the market mood.

Investor attention now shifts to the resumption of India–US trade talks beginning today, alongside the ongoing US Federal Reserve meeting, with its crucial rate decision due tomorrow.

On the macroeconomic side, India’s trade deficit narrowed to Rs 2.21 lakh crore ($26.49 billion) in August from Rs 2.28 lakh crore ($27.35 billion) in July. Analysts at Motilal Oswal highlighted that despite Washington slapping a fifty percent tariff on Indian goods, export momentum has remained resilient so far.

Technically, Motilal Oswal pointed out that the Nifty has immediate support at 25,000 and then 24,900 zones, while resistance is capped at 25,250 and 25,350 zones. “The index must sustain above the 25,050 mark to extend the up move towards 25,250 and eventually 25,350 levels,” the brokerage noted.

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