Benchmark indices opened positively on Thursday, buoyed by global cues following the US Federal Reserve’s widely anticipated 25-basis-point rate cut. The Sensex increased by 328.57 points, or 0.40%, reaching 83,022.28, compared to its previous close of 82,693.71. It opened at 83,108.92 at 9:45 AM. The Nifty 50 gained 90.65 points, or 0.36%, to close at 25,420.90, up from its previous close of 25,330.25, with an opening value of 25,441.05.
The positive start was reinforced by robust Gift Nifty indicators, which suggested a gain of nearly 100 points ahead of market opening. Hariprasad K, a SEBI-registered Research Analyst and Founder of Livelong Wealth, stated, “The US Federal Reserve delivered a widely anticipated 25-basis-point rate cut on Wednesday. With the US being the world’s largest economy, this decision has global market implications, and early cues are already reflecting in positive US indices and Gift Nifty.”
In terms of sector performance, information technology stocks led the gains, with Infosys as the top performer, rising 1.98% to ₹1,552.50. Wipro followed closely with a 1.89% increase to ₹258.95. Sun Pharma advanced 1.38% to ₹1,642.50, while HDFC Life saw a 1.10% gain to ₹776.50. HDFC Bank also featured among the top gainers, up 1.00% to ₹976.15.
On the downside, Bajaj Finance experienced a decline of 1.30% to ₹994.45, leading the laggards. Hindalco dropped 1.03% to ₹742.35, while Apollo Hospitals fell 0.55% to ₹7,845.00. Tata Steel and Bharti Airtel declined 0.53% and 0.38%, closing at ₹170.45 and ₹1,934.00 respectively.
Fed Chair Jerome Powell characterized the rate cut as a “risk management cut,” emphasizing uncertainties around economic activity, unemployment, and inflation. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted, “Since the labor market is cooling and the GDP growth projection for 2025 is only 1.6%, perhaps two more cuts are possible this year.”
The banking sector displayed resilience, with analysts noting attractive valuations. Vijayakumar remarked, “Bank Nifty is resilient, and the fair valuations of banking stocks may attract more investment, particularly from institutional players.” The Bank Nifty closed above its 50-day EMA on the daily chart, suggesting a potential bullish reversal, according to technical analysts.
Foreign Institutional Investors (FIIs) continued their selling streak, recording net outflows of ₹1,124 crore on Wednesday. In contrast, Domestic Institutional Investors (DIIs) provided substantial support by investing ₹2,293 crore. Ponmudi R, CEO of Enrich Money, explained, “FIIs remain cautious, having offloaded ₹11,330.08 crore in the cash market month-to-date. However, their strategic additions in index futures (₹4,727.78 crore) and options (₹6,739.97 crore) reflect hedging activity rather than outright bearishness.”
Technical analysts anticipate that the Nifty may encounter resistance in the 25,400-25,500 range. Ponmudi R noted, “Nifty is currently testing a key resistance trendline formed from its first peak at 26,277 on September 27, 2024. A breakout beyond this level could dismantle the resistance structure, opening the door for a sustained bullish trend.”
Despite persistent volatility, the broader market sentiment remains cautiously optimistic. Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking, remarked, “Market sentiment remains cautiously optimistic, though persistent volatility and mixed global cues continue to weigh on investor confidence.”
Commodity markets experienced sharp volatility, with gold and silver initially falling before rebounding after the Fed’s decision. Rahul Kalantri, VP of Commodities at Mehta Equities, stated, “Gold and silver witnessed sharp volatility, falling in early trades but later rebounding.” Gold has support levels at ₹1,09,140-1,08,780, while resistance lies at ₹1,10,150-1,10,500.
Crude oil prices remained fluctuated amid profit booking, with support seen at ₹5,580-5,510 and resistance at ₹5,710-5,765. Kalantri added, “We expect crude oil prices to remain volatile in today’s session.”
Looking forward, analysts recommend a cautious approach. Shinde emphasized, “Given the backdrop of heightened volatility and uncertain global cues, traders are advised to adopt a cautious ‘buy-on-dips’ strategy,” highlighting the importance of maintaining tight trailing stop-losses to manage risk in the current market environment.
Published on September 18, 2025.
