By Madhu Balaji

Copyright thehindubusinessline

Equity benchmark indices advanced for the second day on Wednesday, aided by broad-based gains, as optimism over progress in trade discussions with the US and hopes of a US Federal Reserve rate cut lifted investor sentiment.

Commenting on the renewed hopes of bilateral trade talks between India-US, Bajaj Broking Research said that the development was particularly well-received by investors, who see stronger trade ties with the US as a positive for economic growth and corporate earnings.

Domestically, equities remained in risk-on mode, supported by expectations of a rate cut and improving macro fundamentals. Strong domestic inflows, currency stability, and favourable geopolitical dynamics continue to create a constructive near-term outlook for the market, said, Vinod Nair, Head of Research, Geojit Investments.

Meanwhile, Ashika Institutional Equities, stressed that the market maintained a positive undertone but lacked strong triggers as investors awaiting further clarity from global trade developments and key macroeconomic cues.

The Nifty 50 rose by 91.15 pts or 0.36 per cent to 25,330.25, and BSE Sensex gained 313.02 pts or 0.38 per cent to close at 82,693.71 — closing at two-month highest levels. With this uptick, the Nifty has posted gains in ten of the past eleven sessions.

Smallcaps outperformed advancing 0.7 per cent, while the mid-caps rose nearly 0.1 per cent. India VIX stayed subdued around 10.25.

Top movers today

On the sectoral front, PSU banks emerged as the top performer with a strong gain of 2.61 per cent, followed by defence index which closed nearly 2 per cent higher. IT, auto and oil & gas were among few other indices that settled with marginal gains.

The bank nifty closed the day at 55,493, adding over 346 pts and extending its pullback rally. Unlike Nifty, the index has been recovering from a deeper corrective phase and a higher high formation in the last 6 trading sessions, shows strong follow-up buying interest, Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities, said.

On the flip side, metals, consumer durables, FMCGs and pharma witnessed profit-booking and underperformed the broader indices.

Among the Sensex pack, Tata Consumer Products, Stata Bank of India, Bharat Electronics, Kotak Mahindra Bank and Maruti emerged as major gainers. HDFC Life, Bajaj Finserv, Titan, Hindalco, ITC and Tata Steel emerged as major laggards.

Bank of Maharashtra, PBN, SBI, Canara Bank and Bank of Baroda led the gainers of Nifty PSU bank index.

Market experts believe that the prospects of a 25 bps cut by the US Federal Reserve later today buoyed IT stocks.

Midcap & smallcap movers

KPIT Tech, Bank of Maharashtra, Aditya Birla Fashion, Cochin Shipyard and Kalyan Jewellers soared 3-4 per cent under the mid-cap segment, while Vodafone Idea, Supreme Industries, Aditya Birla Capital, NHPC and Glenmark declined nearly 2 per cent.

Defence stocks such as GRSE, Zen Tech and Data Patterns soared 4-6 per cent among the smallcap segment. While, Welspun Corp, Godfrey Phillips, Devyani International, Hindustan Copper and HFCL dropped by 1.5-2 per cent.

In addition, three mainboard IPOs, including Urban Company, debuted on the exchanges with robust listing gains, reflecting strong investor interest in niche midcap companies.

A total of 4,328 stocks were traded, on the BSE, of which 2,408 stocks advanced, 1,746 stocks declined and 174 remained unchanged. During this session, 162 stocks such as Manappuram, JSW Steel, Hyundai, Amber and izmo, scaled to their 52-week high, while 53 stocks hit their 52-week low. Eight stocks were locked in the upper circuit, whereas 7 stocks were locked in the lower circuit.

On the BSE, DCM Shriram, PC Jeweller, Dhani Services, Welspun Enterprises and Banco Products rallied 8-10 per cent, while KIOCL and Moschip depreciated by 5 per cent.

Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services, expects the market to continue its gradual up-move, backed by progress in India-US trade talks, potential global liquidity boost by the US Fed rate cut and renewed buying momentum driven by positive sectoral cues.

Geojit’s Nair added that the stable rupee added to investor confidence, while global markets traded cautiously ahead of the US Fed’s FOMC decision.

Global markets

Asian markets: Shanghai’s SSE Composite index and Hong Kong’s Hang Seng ended positive while South Korea’s Kospi and Japan’s Nikkei 225 index declined.

The Wall Street ended lower on Tuesday.

FIIs bought equities worth ₹308.32 crore, exchange data show.

On Tuesday, Sensex zoomed 594.95 pts or 0.73 per cent to 82,380.69 and Nifty climbed 169.90 pts or 0.68 per cent to 25,239.10.

Published on September 17, 2025