By Anupama Ghosh

Copyright thehindubusinessline

Benchmark indices surged on Tuesday, with the Nifty 50 decisively breaking through the crucial 25,200 resistance level to close at 25,239.10, marking a gain of 169.90 points or 0.68 per cent.

The Sensex settled 594.95 points or 0.73 per cent higher at 82,380.69 after hitting an intraday high of 82,443.48, reflecting strong investor confidence ahead of the US Federal Reserve’s policy decision.

The rally was primarily driven by optimism surrounding ongoing India-US trade negotiations and expectations of a 25 basis points rate cut by the Federal Reserve.

Today, the Indian stock markets ended with a strong positive momentum, driven by robust buying in banking and auto stocks, along with optimism over domestic trade prospects and improving global sentiment,” said Vaibhav Vidwani, Research Analyst at Bonanza Group.

Auto stocks emerged as the session’s top performers, with the Nifty Auto index surging over 1.5 per cent. Maruti Suzuki led the gains, closing 2.14 per cent higher at ₹15,592, followed by Mahindra & Mahindra which gained 2.31 per cent to ₹3,612. Eicher Motors also contributed significantly, advancing 2.21 per cent to ₹6,951.

Banking heavyweights provided strong support to the rally, with Kotak Mahindra Bank emerging as the top Nifty gainer, surging 2.67 per cent to ₹2,023.50.

The banking sector’s strength was reflected in the Bank Nifty, which closed 259.75 points or 0.47 per cent higher at 55,147.60, marking its tenth consecutive session of gains. “Bank Nifty too ended on a strong note at 55,147, quickly gathering momentum as it approached the 55,500 mark,” noted Ponmudi R, CEO of Enrich Money.

Infrastructure major Larsen & Toubro also posted impressive gains of 2.34 per cent to close at ₹3,670, contributing significantly to the market’s upward momentum.

On the flip side, FMCG stocks faced selling pressure, with the Nifty FMCG being the sole sectoral laggard, down 0.3 per cent. Shriram Finance led the decliners, falling 0.83 per cent to ₹618.50, while Asian Paints dropped 0.82 per cent to ₹2,482. Other notable losers included Nestle India, down 0.70 per cent at ₹1,204, Tata Consumer Products, declining 0.62 per cent to ₹1,095.80, and HDFC Life, which shed 0.53 per cent to close at ₹773.05.

Market breadth remained positive with 2,507 advances against 1,606 declines on the BSE. A total of 155 stocks hit 52-week highs while 55 touched 52-week lows. “Within the Nifty 500 universe, a solid 324 stocks ended in the green, underscoring the strength of the rally beyond the headline indices,” observed Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities.

The broader markets continued their winning streak, with the Nifty Midcap 100 advancing 313.45 points or 0.54 per cent to 58,799.55, while the Nifty Next 50 gained 397.60 points or 0.58 per cent to close at 69,000.75. The Nifty Financial Services index rose 102.25 points or 0.39 per cent to 26,495.30.

From a technical perspective, analysts noted significant developments. “The benchmark index Nifty has delivered a Symmetrical Triangle breakout on the daily chart, marking a significant technical development,” said Shah. “The breakout was accompanied by a sizeable bullish candle, reinforcing the strength and reliability of the move.”

Nilesh Jain, Head – Technical and Derivatives Research Analyst at Centrum Broking, remained optimistic about the near-term outlook. “The Bulls regained control after a brief pause in the previous sessions. As anticipated, Nifty extended its momentum and crossed the 25,200 mark, driven by short covering. We expect Nifty to move towards 25,500 in the near term.”

Currency markets also reflected positive sentiment, with the rupee gaining 0.13 per cent to trade at 88.05 against the dollar. “Rupee traded with gains supported by the Fed’s interest rate cut and optimism around ongoing US-India trade talks,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities. The rupee is expected to trade in a range of 87.55-88.25 in the near term.

Commodities showed mixed trends, with gold gaining ₹400 or 0.39 per cent as dollar weakness and Fed rate cut expectations kept sentiment buoyant. “Gold remains in a positive range of ₹1,09,000–₹1,12,000 until the Fed’s policy decision,” Trivedi added.

The positive momentum was supported by global factors, with Asian markets trading higher on progress in India-US trade talks and expectations of monetary easing. “The upmove was supported by heightened anticipation of the upcoming U.S. Federal Reserve policy outcome and encouraging progress in India–U.S. trade negotiations,” noted Ajit Mishra, SVP Research at Religare Broking.

Looking ahead, market participants are closely monitoring the US Federal Reserve’s policy decision scheduled for Wednesday evening, which is expected to be a key catalyst for further market direction.

“We expect stock-specific moves to continue, especially in sectors showing earnings resilience and benefiting from favorable policy signals,” said Vidwani. With technical indicators supporting continued strength and global cues remaining favorable, analysts expect the positive momentum to persist in the coming sessions, with Nifty targeting the 25,400-25,500 levels in the near term.

Published on September 16, 2025