The Indian stock market extended gains for a third consecutive session on Thursday, September 18, recovering strongly in the final hour after earlier volatility, as the US Federal Reserve’s first rate cut in 2025 boosted risk-on sentiment and progress in US-India trade talks supported benchmark indices in closing above key levels.
The Nifty 50 ended the session up 0.37%, closing above the 25,400 mark at 25,423, while the S&P BSE Sensex surged 0.39% to finish at 83,013. The broader markets also closed higher, with the Nifty Midcap 100 rising 0.38% and the Nifty Smallcap 100 rallying 0.29%.
Sector-wise, the Nifty Pharma led the gains, rising 1.50%, followed by Nifty IT and Nifty Private Bank, which added 0.83% and 0.44%, respectively. The Nifty Bank index also advanced 0.42%. On the losing side, Nifty Media was the top laggard, slipping 0.30%, followed by the Nifty PSU Bank index, which dropped 0.16%.
The US Federal Reserve delivered a much-awaited rate cut, lowering borrowing costs by 25 basis points to about 4.1% on Wednesday. This marked the first cut in 2025 after rates had been on hold for five consecutive meetings amid concerns that high tariffs could fuel inflation.
Despite inflation remaining slightly above the Fed’s 2% target range, a deterioration in the labor market prompted officials to act, as hiring has nearly ground to a halt in recent months and the unemployment rate has ticked higher.
Lower interest rates could reduce borrowing costs for mortgages, car loans, and business loans, while also boosting growth and hiring. The Fed also indicated that rate cuts may continue through the rest of 2025.
However, Chair Jerome Powell struck a cautious tone on further easing, describing the move as a risk-management measure in response to a softening labor market. He added that the central bank will take a “meeting-by-meeting” approach in assessing the future path of interest rates.
Poonawalla Fincorp, Tata Investment Corp lead the winners’ list
Among the top performers, Poonawalla Fincorp stood out as the stock closed higher by 12.3% at ₹502 apiece after the company said its board had approved the preferential allotment of 3.3 crore shares to promoter Rising Sun Holdings Private Limited.
Tata Investment Corp shares also advanced 6.6% to ₹7,502 apiece, marking their biggest single-day gain in seven months. Zen Technologies, Swan Corp, and Biocon closed with gains of up to 5%.
Ending its three-day slide, Newgen Software Technologies shares advanced 4% to ₹917.70 apiece, while Netweb Technologies gained 3.73% to ₹3,037 apiece. Auto and auto ancillary stocks such as Usha Martin, Escorts Kubota, and Hyundai Motor India closed over 2% higher.
Pharma stocks including Biocon, Natco Pharma, Laurus Labs, Glenmark Pharmaceuticals, Aurobindo Pharma, Mankind Pharma, Ipca Laboratories, Concord Biotech, and Sun Pharmaceutical also closed 2–4% higher.
Banking and NBFC stocks, too, extended their gains, with names such as RBL Bank and City Union Bank closing 2.6% and 2.2% higher, respectively.
Sarda Energy & Minerals, Cohance Lifesciences among top laggards
Sarda Energy & Minerals extended its losing run for the third straight session, slipping another 5.60% to ₹568.60 apiece and emerging as the top laggard among Nifty 500 stocks. Cohance Lifesciences also came under pressure, with the stock dropping 5.5% to ₹912.7 apiece, while DCM Shriram closed 4.8% lower at ₹1,313.90 after gaining 12.6% in Wednesday’s trading session.
Multibagger Hitachi Energy India cracked 3.6%, falling to ₹19,379 apiece, while CCL Products India, Waaree Energies, and Reliance Power each lost 2.9%.
Other stocks such as Premier Energies, Page Industries, Authum Investment & Infrastructure, HBL Engineering, Godfrey Phillips India, Vardhman Textiles, Capri Global Capital, Alembic Pharmaceuticals, Aegis Logistics, and Affle 3i also closed with losses of over 2%.
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