Sensex, Nifty Rise on Trade Optimism, Fed Rate Cut Expectations
Markets were buoyed by a rally across Asian indices, with South Korea’s Kospi, Japan’s Nikkei 225, and Shanghai’s SSE Composite trading higher.
11 September 2025
Indian equity markets extended their gains in early trade on Thursday, September 11, 2025, as investors responded to positive developments in global markets and renewed hopes of a breakthrough in India-U.S. trade negotiations. By 11:20 AM IST, the BSE Sensex was up 153.82 points at 81,578.97, while the NSE Nifty advanced 34.15 points to 25,007.25.
Markets were buoyed by a rally across Asian indices, with South Korea’s Kospi, Japan’s Nikkei 225, and Shanghai’s SSE Composite trading higher. Investors are closely watching signals that the U.S. Federal Reserve may implement a rate cut at its upcoming meeting, a move that could ease global liquidity conditions and support risk assets. However, Hong Kong’s Hang Seng index traded lower amid regional volatility.
Renewed optimism about the India-U.S. trade discussions further supported investor sentiment. Following recent social media exchanges between Prime Minister Narendra Modi and U.S. President Donald Trump, both sides have signaled their intent to resolve differences over tariffs and trade barriers. Experts believe that the longstanding relationship between the two countries, coupled with ongoing dialogue, is likely to yield positive outcomes for markets and economic growth.
Among Sensex constituents, Eternal, Adani Ports, NTPC, Bajaj Finance, State Bank of India, and Bajaj Finserv saw the strongest gains, while Infosys, Tech Mahindra, UltraTech Cement, and Kotak Mahindra Bank struggled to keep pace with the broader rally. Traders pointed to India’s resilient macroeconomic fundamentals and the sweeping reforms introduced this year, particularly the GST framework, as factors that have positioned the economy for accelerated expansion.
Market watchers also highlighted that foreign institutional investors (FIIs) offloaded equities worth ₹115.69 crore on Wednesday after a brief period of net buying, while domestic institutional investors (DIIs) added stocks valued at ₹5,004.29 crore. This divergence underscores the cautious optimism prevailing among global investors, even as domestic sentiment remains constructive.
Experts believe that hopes for a trade deal and the recent record highs in U.S. indices, including the S&P 500 and Nasdaq, are reinforcing bullish trends. The softening of the U.S. Producer Price Index has further fueled expectations of monetary easing, which could provide additional support to equities.
Meanwhile, Brent crude futures dipped slightly, down 0.07% to $67.44 a barrel, reflecting subdued energy demand concerns. In domestic markets, the Sensex has already recorded its third straight day of gains, rising 323.83 points on Wednesday to close at 81,425.15, while the Nifty surged 104.50 points to 24,973.10.
As negotiations between India and the U.S. proceed, market participants are expected to remain focused on both macroeconomic data releases and diplomatic developments. Analysts believe that while near-term volatility may persist, sustained reforms and improving trade ties could pave the way for long-term growth, drawing more investors into Indian equities.