Sensex surges 400 pts, Nifty above 25,100; auto, financials, IT lead market rally

Sensex and Nifty stay in the green with broad-based buying across autos

Indian benchmark indices, Sensex and Nifty, extended their early gains into the afternoon session on September 12 as broad-based buying continued across the markets. Positive global cues further lent support, while India VIX eased by 1.5 percent, signaling no signs of immediate market panic.

Around noon, the Sensex had risen 404.55 points, or 0.50 percent, to 81,953.28, while the Nifty was higher by 117.50 points, or 0.47 percent, at 25,123.00. Market breadth was slightly positive, with 1,909 shares advancing, 1,672 declining, and 149 remaining unchanged.

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Broader markets also traded with a positive bias, reflecting the prevailing optimism on Dalal Street.

On the sectoral front, the Nifty Auto index led the rally, breaking out of its four-day losing streak, supported by gains in Maruti Suzuki, M&M, Tata Motors, Hyundai Motor, and Eicher Motors. Financial and IT stocks also contributed to the buoyant sentiment.

On the downside, the Nifty FMCG index was the top underperformer, slipping 0.7 percent during the noon session. Media and PSU bank stocks too witnessed profit-booking after Thursday’s strong rally.

Overall, the Nifty remains on course to register weekly gains of over 1 percent, extending its winning streak to a second straight week. Investors now await India’s retail inflation data for August, where a sequential uptick is anticipated. Globally, US retail inflation came in at 2.9 percent for August, in line with market expectations, keeping hopes alive for a Federal Reserve rate cut next week.

Technically, ICICI Securities noted that the Nifty is approaching the upper band of its contracting range (25,000–24,400) while retaining a bullish undertone despite intraday volatility. A sustained move above this range could open the doors for the next leg of the rally towards 25,400, coinciding with the 80 percent retracement of the decline from 25,669 to 24,337.

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