CHENNAI: Indian stock markets ended the day with strong gains on Tuesday, September 16, 2025. Positive investor sentiment was supported by favorable global cues, optimism around India-US trade talks, and expectations of an interest rate cut by the US Federal Reserve.
The BSE Sensex rose by 595 points, or 0.73 percent, closing at 82,380.69. The NSE Nifty 50 increased by 170 points, or 0.68 percent, ending at 25,239.10. Midcap and Smallcap indices also gained, up by 0.62 percent and 0.66 percent respectively.
Among sectors, the auto segment led the rally, rising about 1 percent. Mahindra & Mahindra gained 1.5 percent as analysts pointed to early signs of recovering auto demand, supported by recent GST rate cuts. Other auto stocks like Hyundai Motor India, TVS Motors, and Ashok Leyland also saw gains.
Energy stocks rose by 0.8 percent, marking the fifth straight session of gains. The increase came amid strong fuel demand and government support for the sector.
The banking sector saw moderate gains, with the Nifty Bank index rising 0.44%. Kotak Mahindra Bank gained 2.5 percent and Axis Bank rose by 1.48 percent.
Investor optimism was further supported by positive developments in India-US trade talks, raising hopes of easing trade tensions. In addition, expectations of a 25 basis point rate cut by the US Federal Reserve encouraged investors to take positions in emerging markets such as India.
The Indian rupee also strengthened against the U.S. dollar, further boosting market sentiment.
Overall, the market capitalization of companies listed on the BSE rose by around Rs 3 lakh crore, reaching approximately Rs 463 lakh crore by market close.
The market’s positive performance reflected growing confidence in India’s economic outlook amid supportive global and domestic factors.
Asian markets
In Asia, markets showed mixed performance. Japan’s Nikkei 225 rose by 0.5 percent, South Korea’s KOSPI gained 0.63 percent, and Taiwan’s stock market hit record highs, supported by strong performance in semiconductor stocks like TSMC and optimism around artificial intelligence.
Meanwhile, Chinese and Hong Kong stocks remained largely flat, with the Shanghai Composite up just 0.04 percent and Hong Kong’s Hang Seng index slightly down by 0.03 percent. Investors remained cautious, awaiting further clarity on trade tensions and economic data.
Outlook for Wednesday
Looking ahead to Wednesday, September 17, Asian markets are expected to stay optimistic, driven by hopes of a US Federal Reserve rate cut and favorable conditions for emerging market assets. However, investors will closely watch updates on US–China trade relations and upcoming economic indicators.
In India, markets are likely to open positively, supported by global trends and expectations of monetary easing. Key sectors such as auto, energy, and banking may continue to attract buying interest, though caution will prevail amid potential geopolitical developments and domestic economic data.