Benchmarks extend gains as Fed rate cut lift sentiment

Domestic equity benchmarks ended higher on Wednesday, rising for a third consecutive session after the U.S. Federal Reserve cut interest rates by 0.25% to support its labour market. Investor sentiment was further aided by recent goods and services tax reforms and progress in trade negotiations between India and the U.S.

The Nifty closed firmly above the 25,400 mark, forming a higher top and higher bottom pattern on the daily chart, a signal of underlying strength. Sector-wise, pharma and healthcare stocks saw strong buying interest, while media and PSU bank shares came under pressure.

The S&P BSE Sensex rallied 320.25 points or 0.39% to 83,013.96. The Nifty 50 index added 93.35 points or 0.37% to 25,423.60. In three consecutive trading sessions, the Sensex added 1.50% while the Nifty gained 1.41%.

Among major movers, HDFC Life Insurance climbed 2.29%, Infosys advanced 1.13%, and HDFC Bank rose 1.05%, supporting the Nifty today.

In the broader market, the S&P BSE Mid-Cap index rose 0.36% while the S&P BSE Small-Cap index shed 0.01%.

The market breadth was positive. On the BSE, 2097 shares rose and 2083 shares fell. A total of 171 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tanked 3.53% to 9.89.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.62% to 6.506 from the previous close of 6.491.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 88.1475 compared with its close of 88.0500 during the previous trading session.

MCX Gold futures for 3 October 2025 settlement shed 0.12% to Rs 109,689.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.14% to 96.89.

The United States 10-year bond yield fell 0.61% to 4.052.

In the commodities market, Brent crude for November 2025 settlement shed 42 cents or 0.62% to $67.53 a barrel.

Global Market:

The U.S. Dow Jones index futures were up 303 points on Thursday, indicating a strong opening for Wall Street.

European markets also traded higher as investors reacted to the U.S. Federal Reserve's 0.25% rate cut. Meanwhile, the Bank of England kept its key interest rate at 4% Thursday, as elevated UK inflation offsets the country's stagnant economic growth. The decision widely expected by markets followed a regular policy meeting and came one day after the US Federal Reserve cut its benchmark borrowing costs for the first time in 2025.

In contrast, Asian equities ended lower after the Fed's widely expected move. Fed Chair Jerome Powell described the decision as a risk management cut rather than a response to underlying economic weakness.

The central bank also signalled two more rate cuts in 2025, one in 2026, another in 2027, and no cuts in 2028.

The Bank of Japan (BoJ) is kick-starting its two-day policy meeting, where it is expected by most economists to keep policy rates steady.

According to reports, the Bank of Japan is likely to leave policy rates unchanged at its upcoming meeting. However, a 25-basis point hike is possible in October, which would take the policy rate to 0.75%.

Meanwhile, China's central bank left a key interest rate unchanged on Thursday, as authorities appear in no rush to ease monetary settings. Resilient exports and a sharp stock market rally have allowed policymakers to withhold fresh stimulus even with a broader economic slowdown, media reports stated.

Overnight in the U.S., markets ended mixed after a choppy session. Although the rate cut had been widely expected, investors appeared uncertain about its broader implications.

The Dow Jones Industrial Average briefly touched a record high before paring gains but still managed to finish 0.6% higher. In contrast, the S&P 500 slipped 0.1%, while the Nasdaq Composite fell 0.3%.

Stocks in Spotlight:

Poonawalla Fincorp jumped 12.15% to Rs 502.10 after the company said its board approved the allotment of 3.31 crore equity shares worth nearly Rs 1,500 crore to promoter entity Rising Sun Holdings. The shares have been issued at Rs 452.51 per share, including a premium of Rs 450.51, under the preferential issue route.

Biocon rose 3.94% after the company's subsidiary, Biocon Biologics, received approval from the US Food and Drug Administration (USFDA) for Bosaya and Aukelso, denosumab biosimilars.

Natco Pharma added 3.13% after the U.S. Food and Drug Administration (USFDA) has issued an establishment inspection report (EIR) classifying its pharma division facility in Kothur, Hyderabad, as voluntary action indicated (VAI).

Avenue Supermarts, which operates the DMart retail chain, rose 1.35% to Rs 4780 after a foreign brokerage maintained its buy rating and raised the price target to Rs 5,600 from Rs 5,050.

B R Goyal Infrastructure rallied 1.96% after the company reported an order book of Rs 1,442.93 crore as of 31st August 2025, reflecting healthy inflows across multiple segments.

Colab Platforms locked in the upper circuit of 2% after the company has signed a non-binding Memorandum of Understanding (MoU) with RRP Drones Innovation to collaborate on developing autonomous AI-powered aerial surveillance drones.

Cochin Shipyard gained 0.90%. The company announced that it has secured an order worth Rs 200 crore from Oil and Natural Gas Corporation (ONGC) for dry dock or major lay-up repairs of jack-up rigs.

Azad Engineering advanced 2.29% after the company announced that it has inaugurated an exclusive Lean manufacturing facility at its new plant in Tunikibollaram Industrial Park, Hyderabad.

IPO Update:

Euro Pratik Sales' IPO received bids for 1,79,59,020 shares as against 1,34,64,781 shares on offer, according to stock exchange data at 16:57 IST on Thursday (18 September 2025). The issue was subscribed 1.33 times.

The issue opened for bidding on Tuesday (16 September 2025) and it will close on Thursday (18 September 2025). The price band of the IPO is fixed between Rs 235 and 247 per share. An investor can bid for a minimum of 60 equity shares and in multiples thereof.

VMS TMT's IPO received bids for 26,72,69,400 shares as against 1,23,00,000 shares on offer, according to stock exchange data at 16:57 IST on Thursday (18 September 2025). The issue was subscribed 21.73 times.

The issue opened for bidding on Wednesday (17 September 2025) and it will close on Friday (19 September 2025). The price band of the IPO is fixed between Rs 94 and 99 per share. An investor can bid for a minimum of 150 equity shares and in multiples thereof.

Ivalue Infosolutions' IPO received bids for 36,27,950 shares as against 1,31,17,272 shares on offer, according to stock exchange data at 16:57 IST on Thursday (18 September 2025). The issue was subscribed 0.28 times.

The issue opened for bidding on Thursday (18 September 2025) and it will close on Monday (22 September 2025). The price band of the IPO is fixed between Rs 284 and 299 per share. An investor can bid for a minimum of 50 equity shares and in multiples thereof.

Powered by Capital Market - Live News