Sensex, Nifty end higher on easing US-India tensions, Fed rate cut hopes
US President Donald Trump said his administration was in talks with India to resolve trade barriers and planned to speak with Prime Minister Narendra Modi. The remarks raised hopes of a breakthrough after weeks of tensions.
Expectations of a US Federal Reserve rate cut next week further buoyed investor sentiment.
The S&P BSE Sensex added 323.83 points or 0.40% to 81,425.15. The Nifty 50 index rose 104.50 points or 0.42% to 24,973.10.
Bharat Electronics (up 4.26%), Bajaj Finance (up 2.19%) and Infosys (up 1.85%) boosted the Nifty today.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.84% and the S&P BSE Small-Cap index advanced 0.72%.
The market breadth was negative. On the BSE, 2410 shares rose and 1717 shares fell. A total of 158 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 1.38% to 10.54.
Fitch Ratings:
Global ratings agency Fitch Ratings has revised its growth forecast for India, raising its projection for the fiscal year ending March 2026 (FY26) to 6.9%, up from the previous 6.5%.
India-US Trade Negotiations:
Prime Minister Narendra Modi on Wednesday reaffirmed India's deep ties with the United States, describing the two countries as close friends and natural partners. Modi also expressed optimism about collaborating with Trump to secure a brighter, more prosperous future for the people of both nations.
His comments followed remarks by President Trump, who said that Washington and New Delhi would continue negotiations to address existing trade barriers. The statements from both leaders have lifted hopes of progress toward resolving tariff frictions and strengthening bilateral economic ties.
Numbers to Track:
The yield on India's 10-year benchmark federal paper shed 0.08% to 6.481 from the previous close of 6.486.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 88.1125 compared with its close of 88.1525 during the previous trading session.
MCX Gold futures for 3 October 2025 settlement rose 0.18% to Rs 109,231.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.05% to 97.73.
The United States 10-year bond yield added 0.37% to 4.087.
In the commodities market, Brent crude for November 2025 settlement advanced 44 cents or 0.66% to $66.83 a barrel.
Global Market:
Shares in Europe and Asia advanced on Wednesday as investors awaited U.S. inflation data due later today. Investors also assessed China?s August inflation data.
Consumer prices in the mainland fell 0.4% year over year in August, according to data from the National Bureau of Statistics released Wednesday. Core CPI, which strips out volatile food and energy prices, rose 0.9% from a year earlier, according to the official release.
Meanwhile, the producer price index fell 2.9% year over year, improving from the 3.6% drop in July.
In South Korea, the seasonally adjusted unemployment rate rose slightly to 2.6% in August compared with July?s 2.5%, according to government data.
Overnight, all three key benchmarks in the U.S. closed at all-time highs as investors moved past concerns about disappointing jobs data and bet on Federal Reserve rate cuts.
The S&P 500 index settled up 0.27% at 6,512.61, while the Nasdaq Composite gained 0.37% to end the day at 21,879.49, with the latter hitting a new all-time intraday high as well. The Dow Jones Industrial Average finished up 196.39 points, or 0.43%, at 45,711.34.
Stocks in Spotlight:
The Nifty IT index rallied 2.63% to 36,183.80. The index surged 5.46% for the two trading sessions.
Oracle Financial Services Software (up 10.54%), Persistent Systems (up 5.51%), Coforge (up 4.27%), Mphasis (up 3.74%), Wipro (up 2.63%), HCL Technologies (up 2.60%), LTIMindtree (up 2.29%), Tata Consultancy Services (up 1.99%), Tech Mahindra (up 1.9%) and Infosys (up 1.84%) advanced.
Oracle Financial Services Software surged after its parent, Oracle Corp, delivered an ambitious forecast for its cloud business, lifting the NYSE-listed stock to a record high.
Avanti Feeds jumped 15.04%, Apex Frozen Foods rallied 16.33%, and Coastal Corporation advanced 20% after Trump said Washington and New Delhi would resume discussions aimed at addressing tariff barriers. The shares of these export-oriented firms had earlier taken a heavy beating after the US raised tariffs on Indian imports to as high as 50%.
Shares of textile exporters also jumped on Wednesday as optimism grew around renewed India US trade negotiations aimed at resolving tariff frictions. Indo Count Industries (up 20%), Welspun Living (up 10%), Vardhman Textiles (up 8.14%), Bombay Dyeing & Manufacturing Company (up 7.28%), Arvind (up 4.60%), Gokaldas Exports (up 4.09%), Trident (up 3.81%) and Raymond Lifestyle (up 1.80%) gained sharply. A favorable deal could restore competitiveness for Indian exporters in the US market, particularly as global retailers diversify sourcing beyond Bangladesh.
Olectra Greentech rose 2.99% after a media report stated that China's electric vehicle giant BYD plans a senior management visit to India. The report notes that BYD, the world's largest EV maker, is preparing to assess its existing factory, restart training programs, and explore market opportunities for its Atto 2 compact electric SUV, set to be its most affordable model in India.
Olectra Greentech, a key partner of BYD in India, has played a pivotal role in manufacturing and supplying electric buses. Olectra continues to supply buses across the country using BYD?s technology.
Kellton Tech Solutions jumped 5.42% after the company announced the signing of a memorandum of understanding (MoU) with Hungary-based E-Group ICT Software Zrt to collaborate on an AI Project under the EU? India Framework Agreement.
Hero MotoCorp declined 1.37%. The company announced that it will fully pass on the benefits of the next-generation GST 2.0 reforms to customers, effective 22 September 2025.
Bajaj Auto fell 1.56%. The company announced that it will fully pass on the recent GST reduction to buyers, offering price cuts of Rs 20,000 on its two-wheelers and KTM motorcycles and up to Rs 24,000 on its three-wheeler range.
Sri Lotus Developers and Realty added 2.52% after the company said that it has been appointed as developer of a prestigious re-development project located in Mumbai?s Bandra West, in close proximity to the iconic Bandstand Promenade.
Initial Public Offer (IPO) Update:
Urban Company's IPO received bids for 33,19,03,840 shares as against 10,67,73,244 shares on offer, according to stock exchange data at 16:50 IST on Wednesday (10 September 2025). The issue was subscribed 3.11 times.
The issue opened for bidding on 10 September 2025 and it will close on 12 September 2025. The price band of the IPO is fixed between Rs 98 and 103 per share. An investor can bid for a minimum of 145 equity shares and in multiples thereof.
Dev Accelerator's IPO received bids for 6,95,95,955 shares as against 1,31,47,075 shares on offer, according to stock exchange data at 16:55 IST on Wednesday (10 September 2025). The issue was subscribed 5.29 times.
The issue opened for bidding on 10 September 2025 and it will close on 12 September 2025. The price band of the IPO is fixed between Rs 56 and 61 per share. An investor can bid for a minimum of 145 equity shares and in multiples thereof.
Shringar House of Mangalsutra's IPO received bids for 3,38,29,200 shares as against 1,70,16,000 shares on offer, according to stock exchange data at 16:55 IST on Wednesday (10 September 2025). The issue was subscribed 1.99 times.
The issue opened for bidding on 10 September 2025 and it will close on 12 September 2025. The price band of the IPO is fixed between Rs 155 and 165 per share. An investor can bid for a minimum of 145 equity shares and in multiples thereof.
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