Sensex surges 350 pts, Nifty tests 25,000 as India-US trade progress hopes lifts sentiment

Indices held firm with Sensex climbing over 370 points and Nifty inching close to 25,000

Indian benchmark indices, Sensex and Nifty, sustained strong gains through the afternoon session on September 10, buoyed by optimism over potential progress in India–US trade talks that sparked broad-based buying interest. Technology stocks extended their winning streak for the second consecutive day, with sentiment running high ahead of the US Federal Reserve’s meeting next week.

Around noon, the Sensex had climbed 372.91 points, or 0.46 percent, to 81,474.23, while the Nifty was higher by 125.55 points, or 0.50 percent, at 24,994.15. Market breadth remained healthy, with 2,375 shares advancing against 1,234 declining and 134 remaining unchanged.

The broader markets continued to outperform the headline indices, posting their third straight session of gains. Meanwhile, India VIX hovered at comfortable levels, suggesting calmness in overall market sentiment.

Among sectoral performers, the Nifty IT index spearheaded the rally, fueled by gains in heavyweights such as Infosys, Wipro, TCS, and HCL Tech. Investors are keenly watching the Federal Reserve, with traders largely pricing in a 25-basis-point rate cut. Adding to the anticipation, the US Producer Price Index report due later today is expected to influence the Fed’s policy trajectory.

Public sector banks also drew strong investor interest, with index heavyweight SBI rising over one percent during intraday trade.

On the other hand, the Auto index witnessed sustained profit-booking, dragging down names like Hero MotoCorp, Maruti Suzuki, Tata Motors, M&M, and Eicher Motors by up to one percent, making them prominent laggards in the Nifty 50.

Market expert Aishvarya Dadheech, founder and CIO of Fident Asset Management, noted that investors have welcomed the softer tone of US President Donald Trump’s recent remarks towards India. However, he cautioned that India’s relative performance among emerging markets remains lackluster.

He pointed out that India’s allocation in the MSCI index has fallen to 16 percent and the reason behind is purely its underperformance against other other EM peers. Most peers are up 15–20 percent in the last one year, but India has given negative returns, leading to foreign institutional investor outflows.

“It is largely due to tariff uncertainties and geopolitical concerns, which leave India in a weak position for now. But if an additional 25 percent tariff is waived, Indian markets could see better days ahead, possibly before Diwali,” Dadheech added.