Stock market soars amid India-US trade talks and Fed rate cut hopes; Sensex up 595 points

Mumbai, Sep 16 (IANS) The Indian equity indices experienced a sharp rally on Tuesday, buoyed by the resumption of India-US trade talks and Fed rate cut expectations.

Sensex closed at 82,380.69, up 594.95 points or 0.73 per cent. The 30-share index started the session slightly up at 81,852.11 against last session's closing of 81,785.74. The index extended the momentum further following value buying across the segments, excluding FMCG, amid positive global cues. It touched an intraday high at 82,443.48.

Nifty ended the session at 25,239.10, up 169.90 points or 0.68 per cent.

"The domestic market sustained its recovery trend, supported by favourable global cues on expectations of a 25 bps rate cut in the forthcoming US Fed policy decision and renewed optimism surrounding the resumed India-US trade negotiations. Auto and consumer durable stocks outperformed, ahead of the rollout of new GST rates and festive-driven demand expectations," said Vinod Nair, Head of Research, Geojit Investments Limited.

Going forward, investor attention will remain on trade discussions, while strong domestic macro fundamentals are expected to drive upward earnings revisions, supporting current valuations and mitigating downside risks.

Kotak Bank, Mahindra and Mahindra, L&T, Maruti Suzuki, Bharati Airtel, Tata Steel, Adani Airports, Axis Bank, HCL Tech, NTPC, TCS, BEL, Eternal, SBI, Titan Tech Mahindra, and PowerGrid were settled in positive territory from the Sensex basket. Bajaj FinServ and Asian Paints were the top losers.

The majority of sectoral indices ended the session in green amid value buying. Nifty Fin Services rose 102 points or 0.39 per cent, Nifty Bank jumped 259 points or 0.47 per cent, Nifty Auto soared 385 points or 1.44 per cent, and Nifty IT ended the session 310 points or 0.86 per cent higher. Nifty FMCG fell.

Broader indices followed the trend as well. Nifty Small Cap 100 jumped 171 points or 0.95 per cent, Nifty Midcap 100 jumped 313 points or 0.54 per cent, and Nifty 100 closed 170 points or 0.66 per cent higher.

Rupee traded with gains of 0.13 per cent at 88.05, supported by the Fed’s interest rate cut and optimism around India-US trade talks.

aps/na