Benchmark indices extended their winning streak for the third consecutive session on Thursday, with the Sensex closing up by 320.25 points, or 0.39 percent, at 83,013.96. The Nifty 50 also gained 93.35 points, representing a 0.37 percent increase to settle at 25,423.60. This rally was largely fueled by the US Federal Reserve’s decision to cut interest rates by 25 basis points to 4.25 percent, marking its first reduction since December.
“The Indian stock market closed positively today, with the Sensex rising approximately 320.25 points (0.39 percent) to around 83,013.96 and the Nifty gaining about 93.35 points (0.37 percent) to hover near 25,423.6 levels. The positive market sentiment was primarily driven by the US Federal Reserve’s decision to cut interest rates,” said Vaibhav Vidwani, Research Analyst at Bonanza Group.
Pharmaceutical stocks were among the biggest beneficiaries of the Fed rate cut, with the Nifty Pharma index climbing 1.50 percent to reach 22,574.35. Eternal topped the gainers list with a 2.92 percent increase to ₹337.85, followed by HDFC Life, which rose 2.22 percent to ₹785.10. Sun Pharma gained 1.75 percent to ₹1,648.50, and Cipla was up 1.31 percent to ₹1,580.00. Infosys closed 1.23 percent higher at ₹1,541.10.
In contrast, Coal India declined by 1.69 percent to ₹393.00, while Bajaj Finance dropped 1.33 percent to ₹994.10. Other decliners included Trent, which fell 0.93 percent to ₹5,149.00, Tata Motors, which slipped 0.92 percent to ₹712.50, and Tata Consumer Products, which ended 0.69 percent lower at ₹1,128.50.
“The market rally continues, with the Nifty ending 93 points higher, while the Sensex was up by 320 points. Among sectors, Pharma and Healthcare indices gained over 1 percent, although intraday profit booking was observed in selective Defence stocks,” noted Shrikant Chouhan, Head of Equity Research at Kotak Securities.
The broader market also showed positive momentum, with both midcap and smallcap indices rising nearly 0.5 percent each. The Nifty Midcap 100 gained 0.38 percent to close at 59,073.20, while the Nifty Bank advanced 0.42 percent to finish at 55,727.45. The market breadth was mixed, with 2,097 stocks advancing against 2,083 declining issues on the BSE.
“Markets exhibited volatility on Thursday but managed to maintain a positive tone, following the prevailing trend. After a flat start, the Nifty index oscillated in a limited range in the first half; however, volatility among heavyweights in the latter half triggered sharp swings,” explained Ajit Mishra, SVP Research at Religare Broking Ltd.
Sectoral performance showed a mixed outcome, with IT and Financial Services joining pharma stocks as gainers, while Energy, PSU Banks, and Media sectors faced selling pressure. The Nifty Financial Services index rose 0.51 percent to 26,698.65.
In the derivatives market, notable open interest build-up was observed in Mankind Pharma, Page Industries, KFin Technologies, LTIMindtree, and HFCL, indicating active positioning ahead of upcoming sessions. “The benchmark index Nifty witnessed a sharp recovery in the final hour of Thursday’s trading session, resulting in the formation of a small-bodied candle with a long lower shadow on the daily chart. This pattern reflects buying interest at lower levels, suggesting that bulls are defending key support zones,” remarked Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities.
Despite the positive market sentiment, the rupee remained under pressure. Anindya Banerjee, Head of Currency & Commodity Research at Kotak Securities, stated, “The USDINR has not reacted much to the somewhat dovish tilt from the US Federal Reserve. Until a trade agreement with the US is finalized, the Rupee is likely to stay under pressure due to FPI outflows and speculative selling.” The currency is expected to consolidate within the ₹87.70-88.70 range.
In commodities, gold demonstrated volatility, with MCX Gold recovering to ₹1,09,775 after dipping to ₹1,08,700. “Gold opened weak as participants booked profits ahead of the Fed’s policy decision but soon recovered due to support from rupee weakness,” stated Jateen Trivedi, VP Research Analyst at LKP Securities.
Looking ahead, technical analysts remain optimistic about the market’s trajectory. “We expect the Nifty to test levels of 25,600, followed by 25,750 in the short term. On the downside, the 25,300–25,270 range is likely to act as crucial support,” Shah added. The market is poised to test the 25,500 resistance level, with a decisive move above potentially triggering a rally towards 26,000 levels.
Published on September 18, 2025.
