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Indian Stock Markets Rally for Second Day, Fueled by U.S. Trade Hopes and Fed Rate Cut Speculation

September 17, 2025
in Business
Reading Time: 2 min

Indian benchmark stock indices, the Sensex and Nifty, extended their upward momentum for a second consecutive day this Wednesday, September 17, 2025. This surge was primarily fueled by strong investor buying across IT, banking, and automotive sectors, sparked by positive bilateral trade discussions with a visiting U.S. delegation.

The 30-share BSE Sensex concluded the day up by 313.02 points, a 0.38% increase, closing at 82,693.71. Earlier in the trading session, it had peaked at 82,741.95, marking a 0.43% jump.

Similarly, the broader 50-share NSE Nifty advanced by 91.15 points, or 0.36%, reaching a settlement of 25,330.25.

Analysts attribute this sustained rally to two key factors: increasing optimism regarding a potential interest rate cut by the U.S. Federal Reserve, and promising U.S.-India negotiations for a comprehensive bilateral trade agreement.

Among the Sensex constituents, notable gainers included State Bank of India, Bharat Electronics, Kotak Mahindra Bank, Maruti, Trent, and UltraTech Cement.

Conversely, Bajaj Finserv, Titan, ITC, and Tata Steel recorded losses during the trading session.

The Commerce Ministry announced on Tuesday, September 16, 2025, that day-long discussions with a U.S. trade team proved highly constructive. Both nations expressed a commitment to accelerate efforts towards an early and reciprocally beneficial trade agreement, with a joint decision to ‘intensify efforts’ for its swift conclusion.

Across Asian markets, a mixed trend was observed. Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index closed higher, while South Korea’s Kospi and Japan’s Nikkei 225 experienced declines.

European markets mostly trended upwards, contrasting with U.S. markets, which had closed lower on Tuesday.

Meanwhile, the global oil benchmark, Brent crude, saw a slight dip of 0.58%, settling at $68.07 per barrel.

Foreign Institutional Investors (FIIs) demonstrated renewed buying interest on Tuesday, injecting ₹308.32 crore into equities, as per exchange data.

This follows Tuesday’s robust performance, where the Sensex surged 594.95 points (0.73%) to close at 82,380.69, and the Nifty gained 169.90 points (0.68%), ending at 25,239.10.

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