Stock market today: Optimism over a potential India–US trade deal, expectations of a 25-bps rate cut by the US Fed, and a rise in the rupee against the US dollar helped the Indian stock market post healthy gains on Tuesday, September 16.
The Sensex jumped 595 points, or 0.73 per cent, to close at 82,380.69, while the Nifty 50 ended at 25,239.10, up 170 points, or 0.68 per cent. The BSE Midcap and Smallcap indices rose 0.62 per cent and 0.66 per cent, respectively.
Investors earned nearly ₹3 lakh crore in a day as the overall market capitalisation of BSE-listed firms rose to nearly ₹463 lakh crore from ₹460 lakh crore in the previous session.
Indian stock market: 10 key highlights from the day
1. Why did the Indian stock market rise today?
Market sentiment turned positive as India and the US resumed trade negotiations, with US Trade Representative for South Asia Brendan Lynch visiting New Delhi to discuss a potential deal.
Expectations of a 25-bps rate cut by the US Federal Reserve on September 17 also bolstered investor confidence, while a weaker dollar and a stronger rupee further fuelled the market rally.
“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,” Vinod Nair, Head of Research, Geojit Investments, observed.
“Auto and consumer durable stocks outperformed, ahead of the rollout of new GST rates and festive-driven demand expectations. 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,” Nair said.
2. Top gainers in the Nifty 50 index today
As many as 42 stocks ended higher in the Nifty 50 index, among which Kotak Mahindra Bank (up 2.67 per cent), Larsen & Toubro (up 2.34 per cent), and Mahindra & Mahindra (up 2.31 per cent) were the top gainers.
3. Top losers in the Nifty 50 index
Shares of Shriram Finance (down 0.83 per cent), Asian Paints (down 0.82 per cent), and Nestle India (down 0.70 per cent) ended as the top losers in the index.
4. Sectoral indices today: Nifty FMCG lone loser
All sectoral indices ended higher, except for Nifty FMCG, which declined 0.27 per cent.
Nifty Auto (up 1.44 per cent) and Realty (up 1.07 per cent) jumped over a per cent each, while Nifty Oil & Gas (up 0.86 per cent), Media (up 0.86 per cent), IT (up 0.86 per cent), Metal (up 0.83 per cent), Consumer Durables (up 0.80 per cent) and Private Bank (up 0.78 per cent) rose by almost a per cent each.
Nifty Bank climbed 0.47 per cent and the Financial Services index ended 0.39 per cent higher.
5. Most active stocks in terms of volume
Vodafone Idea (84.84 crore shares), Rama Steel Tubes (29.04 crore shares), and Sigachi Industries (12.93 crore shares) were the most active stocks in terms of volume on the NSE.
6. 12 stocks jump over 15% on BSE
As many as 12 stocks, including Laxmi Dental, Kothari Products, Ravinder Heights, Chennai Meenakshi Multispeciality Hospital, and Emmessar Biotech & Nutrition, jumped over 15 per cent on the BSE.
7. Advance-decline ratio
Out of 4,309 stocks traded on the BSE, 2,508 advanced, while 1,606 declined. Some 195 stocks remained unchanged.
8. 155 stocks hit 52-week highs
Maruti Suzuki India, JSW Steel, Eicher Motors, and Cummins India were among the 155 stocks that hit their 52-week highs in intraday trade on the BSE.
9. Over 50 stocks hit 52-week lows
As many as 55 stocks, including Alphalogic Techsys, Anik Industries, Dhruv Consultancy Services, and Medicamen Biotech, hit their 52-week lows in intraday trade on the BSE.
10. Nifty 50 technical outlook
Shrikant Chouhan, the head of equity research at Kotak Securities, believes that as long as the Nifty 50 is trading above 25,100, the bullish sentiment is likely to continue. On the higher side, it could move up to 25,400, with further upside potential that may lift the index to 25,500.
On the flip side, below 25,100, the sentiment could change, and traders may consider exiting their long positions, said Chouhan.
The current market texture is bullish, but buying on intraday dips and selling on rallies would be the ideal strategy for day traders.
According to Rupak De, Senior Technical Analyst at LKP Securities, the Nifty has given a double bottom breakout on the daily timeframe, indicating rising optimism.
De underscored that the index has been sustaining above the 21EMA, confirming a continuation of the uptrend. Additionally, the RSI has moved above its previous swing high, further supporting bullish momentum.
“In the short term, the trend is likely to remain strong, with potential upside towards 25,500 and beyond. On the downside, support is placed at 25,000, and a break below this level could signal the end of the current rally,” said De.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.