As of 10:55 AM IST on September 17, 2025, India’s benchmark indices extended their gains, with positive momentum driven by global trade developments and expectations of monetary easing. The BSE Sensex rose by around 300 points, or 0.4%, trading near the 82,700 level, while the Nifty 50 index climbed over 80 points, or more than 0.34%, hovering close to 25,325. The index crossed the 25,300 threshold for the first time since July, reflecting broad-based buying.
Auto stocks led the rally, with the Nifty Auto index advancing more than 0.6%, supported by strong performances from companies such as Tata Motors and Maruti Suzuki. Stocks in the IT, realty, and media sectors also gained ground, while FMCG, metals, and pharmaceuticals remained under pressure, trading lower during the morning session.
Investors were encouraged by the easing of trade tensions between India and the United States. Recent discussions between Prime Minister Narendra Modi and U.S. President Donald Trump created optimism that the two countries are working toward resolving long-standing trade disputes. Trump expressed confidence about the progress in trade talks and referred to Modi as a close friend, while Modi described India and the U.S. as natural partners. These developments allayed earlier concerns about Trump’s proposed 50% tariffs on Indian goods and boosted market sentiment.
Expectations of a possible rate cut by the U.S. Federal Reserve further strengthened investor confidence. The Fed’s policy meeting, which concludes on September 17, is expected to result in a 25 basis point reduction in interest rates amid soft job data and pressure from the administration. A cut in rates is seen as beneficial for sectors such as IT, which derive significant revenue from the U.S. market. Investors are also hopeful that any easing by the Fed could prompt India’s central bank to reduce rates at its upcoming monetary policy review later this month.
The Indian rupee opened at 87.82 against the U.S. dollar, its best start in three weeks, improving from the previous session’s close of 88.05. The rupee’s recovery was supported by a weakening U.S. dollar, with the dollar index falling to a three-and-a-half-year low below the 96 mark. This trend further contributed to market optimism.
Experts noted that a combination of improved geopolitical relations, expectations of monetary easing, and favorable currency movements were driving the rally. Analysts pointed out that sectors such as automobiles have already factored in the anticipated demand surge, while other areas like banks and NBFCs could see increased investor interest once rate decisions are finalized.
The markets are expected to remain sensitive to further developments in U.S.-India trade negotiations and the outcome of the Fed’s policy meeting. Investors will also be watching the Reserve Bank of India’s upcoming review for clues on future monetary policy, which could have far-reaching implications for India’s economic growth and investment sentiment.
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