Indian equity markets closed on a positive note today, buoyed by optimism over progress in India-US trade negotiations and expectations of a potential interest rate cut by the US Federal Reserve later in the day. The BSE Sensex climbed by approximately 313 points, or 0.38%, to settle at around 82,693.70, while the NSE Nifty 50 advanced by about 91 points, or 0.36%, closing at 25,330.25.

This upward movement reflects improving investor sentiment amid encouraging geopolitical and macroeconomic signals. One of the key drivers of the rally was renewed hope for an early trade agreement between India and the United States. Officials from both sides described the latest round of talks as “constructive” and “forward-looking,” which boosted confidence in the possibility of a favorable outcome. This development was particularly well-received by investors, who see stronger trade ties with the US as a positive for economic growth and corporate earnings. 

In addition, market participants were also closely watching developments in the US, where the Federal Reserve is expected to announce its policy decision later today. PSU Banks lead the gains with a gain of 2.6%, Auto, Information Technology (IT), and Oil & Gas stocks saw notable gains, with these sectors rising between 0.5% to 1%. On the flip side, sectors such as FMCG (Fast-Moving Consumer Goods), Consumer Durables, Power, Telecom, and Metals ended the session in the red. The BSE Midcap index ended the day flat, reflecting cautious sentiment among mid-sized companies. Meanwhile, the BSE Small cap index edged higher by 0.3%.

Nifty Outlook

The index has formed a bull candle with a higher high and higher low and a bullish gap below its base ( 25240-25270) signaling extension of the up move. Nifty has recently generated a bullish crossover of 20 and 50-day EMA, highlighting positive bias. Nifty in yesterday's session closed above the immediate resistance area of 25,250, signaling strength and opening further upside towards the 25,500 levels in the coming weeks. On the downside, immediate support is seen near the 24,850 levels, being the confluence of the 20- & 50-day EMA and the recent trendline breakout area, holding above the same will keep the bias positive.

Also Read: Bajaj Broking & MOFSL Closing Market Commentary: Sept 16, 2025

Bank Nifty Outlook

The Bank Nifty has formed a strong bull candle with a higher high and higher low signaling extension of the pullback for the 11th consecutive sessions. The index is seen sustaining above the 50 days EMA. The index on Tuesday's session tested the immediate hurdle of 55,500 levels in yesterday's session.

A follow-through strength will open further upside towards 56,000-56150 levels in the coming sessions being the 61.8% retracement of the entire decline (57628-53561). On the downside, immediate support is placed at 54,800 levels, being the 20- and 100-days EMA. While key support is placed at 54000 levels being the confluence of the last week low and key retracement of the current pullback. 

As per Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd,  Indian equities ended higher on optimism over progress in India-US trade negotiations and anticipation of a rate cut in the US Fed policy outcome later today.  Nifty50 closed with gains of 91 points at 25,330 (+0.4%). In the broader market, Nifty Midcap100 and Smallcap100 indices advanced 0.1% and 0.7% respectively. 

Sectorally, Nifty PSU Bank index gained 2.6%, following clarification from the finance ministry that there was no proposal to reduce the government’s stake in PSU banks below 51%. Strength was visible in IT, Auto and Oil and Gas sectors, with these indices up in the range of 0.5 – 0.7% each.

Defence shares extended their rally for the fourth straight session on the back of order-wins and strong investor interest. On the global trade front, India and the US agreed to step-up efforts for an early, mutually beneficial trade deal after a seven-hour meeting between chief negotiators in New Delhi. This led to improved investor sentiments, with Nifty continuing its momentum with gains of 3.7% (+903 points) in Sep '25 so far. 

Meanwhile, three mainboard IPOs including Urban Company, debuted on the exchanges with robust listing gains, reflecting strong investor interest in niche midcap companies. Overall, we expect the market to continue its gradual up-move, backed by progress in India-US trade talks, potential global liquidity boost by the Fed rate cut and renewed buying momentum driven by positive sectoral cues.