Equity benchmark indices saw gains for the second consecutive day on Wednesday, driven by broad-based increases as optimism regarding progress in trade discussions with the United States and expectations of a US Federal Reserve rate cut bolstered investor sentiment.
Bajaj Broking Research commented on the renewed optimism surrounding bilateral trade negotiations between India and the US, highlighting that this development was particularly well-received by investors. The strengthening of trade ties with the US is viewed favorably for economic growth and corporate earnings potential.
Domestically, equities remained in a risk-on environment, buoyed by expectations for a rate cut and improving macroeconomic fundamentals. Vinod Nair, Head of Research at Geojit Investments, noted that strong domestic inflows, currency stability, and favorable geopolitical dynamics contribute to a positive near-term market outlook.
Ashika Institutional Equities indicated that while the market retained a positive tone, strong triggers were lacking, as investors awaited further clarity on global trade developments and crucial macroeconomic indicators.
The Nifty 50 index increased by 91.15 points or 0.36 percent to close at 25,330.25, while the BSE Sensex gained 313.02 points or 0.38 percent, finishing at 82,693.71, marking its highest close in two months. This continued the Nifty’s trend of gaining in ten of the last eleven sessions.
Smallcap stocks outperformed, rising by 0.7 percent, whereas mid-caps experienced a slight increase of nearly 0.1 percent. The India VIX remained subdued around 10.25.
In sectoral performance, PSU banks emerged as the top gainers, up by 2.61 percent, followed closely by the defence index, which rose nearly 2 percent. The IT, auto, and oil & gas sectors also recorded marginal gains. The Bank Nifty index closed at 55,493, gaining over 346 points and extending its recovery rally. Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, noted that the index has recovered from a deeper corrective phase with strong follow-through buying interest over the last six trading sessions.
Conversely, sectors such as metals, consumer durables, FMCGs, and pharmaceuticals experienced profit booking and underperformed against broader indices.
Among the top gainers in the Sensex, Tata Consumer Products, State Bank of India, Bharat Electronics, Kotak Mahindra Bank, and Maruti stood out. Detractors included HDFC Life, Bajaj Finserv, Titan, Hindalco, ITC, and Tata Steel.
Bank of Maharashtra, PBN, SBI, Canara Bank, and Bank of Baroda led the Nifty PSU bank index performance. Market analysts believe that the expectations of a 25 basis points rate cut by the US Federal Reserve later in the day supported IT stocks.
In the mid-cap and small-cap segments, KPIT Tech, Bank of Maharashtra, Aditya Birla Fashion, Cochin Shipyard, and Kalyan Jewellers saw increases of 3-4 percent, while Vodafone Idea, Supreme Industries, Aditya Birla Capital, NHPC, and Glenmark dropped nearly 2 percent.
Defence stocks like GRSE, Zen Tech, and Data Patterns surged 4-6 percent among small caps, while Welspun Corp, Godfrey Phillips, Devyani International, Hindustan Copper, and HFCL fell by 1.5-2 percent.
Additionally, three mainboard IPOs including Urban Company debuted on the exchanges with significant gains, reflecting strong investor interest in niche mid-cap companies.
Of the 4,328 stocks traded on the BSE, 2,408 advanced, 1,746 declined, and 174 remained unchanged. During the session, 162 stocks, including Manappuram, JSW Steel, Hyundai, Amber, and Izmo, reached their 52-week highs, while 53 stocks hit their lows. Eight stocks were locked in upper circuits, and seven entered lower circuits.
On the BSE, DCM Shriram, PC Jeweller, Dhani Services, Welspun Enterprises, and Banco Products surged by 8-10 percent, whereas KIOCL and Moschip declined by around 5 percent.
Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services, anticipates the market to continue its gradual upward trend, supported by progress in India-US trade talks, potential global liquidity boosts from the US rate cut, and renewed buying momentum in positive sector cues.
Nair of Geojit added that a stable rupee further boosted investor confidence, as global markets traded cautiously ahead of the US Federal Reserve’s Federal Open Market Committee (FOMC) decision.
In global markets, Asia saw a mixed performance with Shanghai’s SSE Composite and Hong Kong’s Hang Seng indices closing positively, while South Korea’s Kospi and Japan’s Nikkei 225 indices saw declines. Wall Street finished lower on Tuesday.
Foreign institutional investors (FIIs) purchased equities worth ₹308.32 crore, according to exchange data. On Tuesday, the Sensex increased by 594.95 points or 0.73 percent to 82,380.69, and the Nifty climbed 169.90 points or 0.68 percent to 25,239.10.
Published on September 17, 2025.
