On Wednesday, September 17, equity benchmark indices Sensex and Nifty 50 are expected to open in green, even as global markets remain cautious ahead of the US Federal Reserve policy outcome. At 7:17 AM, the GIFT Nifty was trading near 25,380, up by 43 points.
India and the US termed the talks between Chief US negotiator Brendan Lynch and Indian counterpart Rajesh Agrawal, on the proposed bilateral trade agreement as “positive and forward-looking”. The two countries also decided to intensify efforts to reach a mutually beneficial trade agreement at the earliest.
Asian markets traded mixed, while the US markets ended in the red overnight ahead of the expected Fed rate cut.
The Federal Open Market Committee (FOMC) is widely expected to cut interest rates by 25 basis points in its meeting on September 16 and 17.
On Tuesday, September 16, Foreign Institutional Investors (FIIs) were net buyers. FIIs bought equities worth ₹308.32 crore.
Domestic Institutional Investors (DIIs) were buyers on Tuesday. They bought shares worth ₹1,518.73 crore on the same day. DIIs have been net buyers for the past 16 consecutive trading sessions.
The Nifty50 index closed higher on Tuesday, rising 0.68% to settle at 25,239.10, supported by optimism around a potential India–US trade agreement and expectations of a 25-bps rate cut by the US Federal Reserve. The Sensex surged 595 points, or 0.73%, to finish at 82,380.69.
The Bank Nifty ended the session at 55,147.60, up 0.47%. Broader market indices also advanced, with mid-cap and small-cap stocks gaining between 0.54% and 0.95%.
Wall Street ended lower on Tuesday in a volatile session as investors stayed cautious ahead of the US Federal Reserve’s policy outcome, where a rate cut is widely anticipated.
Markets have priced in a 25 basis-point reduction, with the Fed’s two-day meeting set to conclude on Wednesday. The move is aimed at addressing signs of weakness in the labor market reflected in recent data.
The Dow Jones Industrial Average fell 125.55 points, or 0.27%, to close at 45,757.90. The S&P 500 slipped 8.52 points, or 0.13%, to 6,606.76, while the Nasdaq Composite inched down 14.79 points, or 0.07%, to settle at 22,333.96.
On Monday, the S&P 500 and Nasdaq had finished at record highs after hitting fresh intraday levels in several sessions. Despite Tuesday’s dip, all three indexes remain in positive territory for September — a month often viewed as difficult for US equities.
China described the tentative agreement to shift TikTok’s ownership under US control as a “win-win” arrangement and confirmed it would review the app’s technology exports along with intellectual property licensing matters. Investors are now focused on the upcoming call scheduled for Friday between US President Donald Trump and Chinese President Xi Jinping, where the deal is expected to be finalised.
Retail sales in the US recorded stronger-than-expected growth in August, marking the third consecutive month of solid gains. Sales advanced by 0.6% last month, following a revised 0.6% rise in July. On an annual basis, retail sales climbed 5.0%.
US manufacturing activity showed an unexpected rise in August, with factory output growing by 0.2% after a downwardly revised 0.1% dip in July. On a year-over-year basis, factory production was higher by 0.9% in August.
Gold edges higher in the early morning Asian session on likely position adjustments ahead of the FOMC decision due later today. Spot gold is 0.1% higher at $3,694.54/oz.
Brent crude oil futures hovered around $68.4 per barrel and WTI crude oil futures hovered around $64.5 per barrel on Wednesday, holding most of their three-day gains to remain near a two-week high.
The US dollar index fell 0.714% to 96.653, its lowest level since July 1.
Disclaimer: The article is for informational purposes only and not investment advice.
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