Share Market Today 17 September: Stock market opens on a positive note
Share Market Today 17 September: On Wednesday, Indian stock markets began trading positively, buoyed by reduced geopolitical tensions and hopes for a potential interest rate cut by the US Federal Reserve. Investors were also reassured by the first phone conversation between US President Donald Trump and Prime Minister Narendra Modi since June, indicating bettering relations.
The Nifty 50 index started the day at 25,276.60, gaining 37.50 points or 0.15 per cent, while the BSE Sensex opened at 82,498.97, up 118.28 points or 0.14 per cent.
Market experts pointed out that optimism is building around India as trade talks with the US have resumed. A US trade team is currently in India, and discussions lasting over seven hours were described as "positive" by both sides. This is seen as a supportive factor for investor sentiment.
Ajay Bagga, Banking and Market Expert, told ANI that "Indian market futures are positive this morning, unlike the US and Asian markets, which are in wait-and-watch mode. Any US de-escalation of tariff rhetoric will be a sentiment booster for the Indian markets. The Fed rate cut tonight will be positive for EM flows on the back of a softer US dollar outlook."
Trump called Modi on Tuesday to wish him a happy birthday. Both leaders later posted warm messages on social media, reiterating their commitment to the Indo-US strategic partnership and efforts to end the Ukraine conflict.
The broader indices on NSE also mirrored the gains, with the Nifty 100 opening 0.17 per cent higher, the Nifty Midcap 100 rising 0.32 per cent, and the Nifty Smallcap 100 advancing 0.38 per cent.
Sectoral indices on the NSE also opened in green. Nifty Auto gained 0.14 per cent, Nifty FMCG rose 0.29 per cent, Nifty IT was up 0.32 per cent, Nifty Media increased 0.34 per cent, and Nifty Metal added 0.32 per cent. Nifty Pharma edged up 0.04 per cent, while Nifty PSU Bank rose 0.21 per cent.
Globally, caution prevailed ahead of the Fed meeting outcome, which is around 15 hours away. While a rate cut is seen as almost certain, analysts noted that strong US retail sales and resilient inflation numbers make a jumbo cut less likely.
Despite the Federal Reserve's unexpected moves in the past, like the 50-basis-point reduction in September 2024, all possibilities remain open. On Wednesday, Asian markets showed mixed results in early trading. Japan's Nikkei 225 saw a slight increase of 0.12 percent, whereas Hong Kong's Hang Seng Index jumped 1.48 percent. Conversely, Singapore's Straits Times dropped 0.3 percent, Taiwan's Weighted Index decreased by 0.42 percent, and South Korea's KOSPI fell 0.98 percent.
At the same time, oil prices rose due to concerns that Ukrainian attacks on Russian refineries and export hubs might limit global supplies. Gold remained near record highs, although analysts anticipate some profit-taking once the Fed continues its rate-cutting cycle. The dollar index weakened, while the euro, yen, and Swiss franc strengthened.