The Stock Market Today session saw benchmark indices recover after three consecutive sessions of losses, with the Nifty reclaiming the 23,200 level. The Sensex gained 333 points to close at 74,336, while the Nifty rose 99 points to settle at 23,218 on Wednesday, September 16.

The recovery was supported by financial and FMCG stocks, while IT shares remained a drag on the benchmarks. Axis Bank, Mahindra & Mahindra and Tata Consumer were among the leading Nifty gainers.

Key Highlights

• Sensex gained 333 points to close at 74,336, while Nifty rose 99 points to 23,218 on Wednesday.
• Financial and FMCG stocks led the recovery, while IT stocks remained under pressure during Wednesday’s trading session.

IT Stocks Remain Under Pressure

The positive rally was undermined by IT stocks. Four out of five top gainer stocks from the Nifty had slipped during the session, TCS, Wipro, Infosys and Tech Mahindra were among the four stocks that had lost big shares on the board.

On the other hand, the insurance stocks were trading at lower levels with HDFC Life and SBI Life both rising by around 3%.

Overall, the overall stock market was subdued. The Nifty Midcap index, which fell four points to 60,874, was seen to have lagged behind the benchmark indices.

In individual stocks, Patanjali Foods rose 7% on high volume while PB Fintech rose 5%. Paytm was also up 4% while Pine Labs fell 4% after the merchant discount rates (MDR) were restored on UPI transactions.

FMCG, Financial Stocks Lead Recovery

FMCG stocks were the better performers during the session. Some of the companies which gained within the Nifty FMCG group include Patanjali Foods, Marico, Colgate-Palmolive, Tata Consumer Products and ITC.

Financial stocks also helped the benchmark recover with the Nifty Bank index up by over 500 points from the day's bottom. Technology stocks have suffered from weakness, but the recovery in banking and financial stocks has helped to drive the sector higher.

Gold-financing companies also largely ended higher, led by a 2% gain in Muthoot Finance. Meanwhile, Premier Energies, Kalyan Jewellers, Nippon Life and Sona BLW were among the notable midcap stocks under pressure.

Rupee Closes Unchanged Against US Dollar

The Indian rupee closed unchanged at Rs 95.96 against the US dollar on Wednesday. The currency opened at the same level and remained largely range-bound through the session.

Market participants continued to monitor movements in the dollar index, crude oil prices and foreign fund flows for further direction.

Also Read: Weekly Stock Market Report: Sensex and Nifty Extend Fifth Weekly Fall

US Fed Decision in Focus

With the recent losing streak broken, investor attention is now turning towards the outcome of the US Federal Reserve's monetary policy meeting.

The Fed's interest-rate decision, accompanying commentary and guidance on the future rate path are expected to provide cues for global risk sentiment and the next direction of Indian equities.

Market participants are also tracking global inflation, bond yields and geopolitical developments. According to Marketsmith India's Mayuresh Joshi, the next few weeks could remain challenging, while the outlook for Indian equities will also depend on domestic earnings and developments surrounding the West Asia crisis.