Nifty Breaks Two-Day Losing Streak, Closes Above 23,200; Nifty FMCG Gains, IT Falls

Indian benchmark indices staged a recovery on Wednesday, September 16, after witnessing losses in the previous two sessions. However, gains remained limited as investors continued to monitor rising crude oil prices, currency movement, and the upcoming US Federal Reserve policy decision.

The Nifty 50 opened at 23,201.60 and initially slipped to an intraday low of 23,116.10. Buying interest emerged at lower levels, helping the index recover towards the day’s high of 23,284.75. During the second half of the session, the index traded within a narrow range between 23,200 and 23,250.

At the closing bell, the Nifty 50 settled at 23,217.60, gaining 99 points or 0.43%, ending its two-day losing streak. The Sensex also closed higher, rising 332.64 points to 74,336.46. Banking stocks outperformed the broader market, with the Bank Nifty ending 0.77% higher. Meanwhile, India VIX declined nearly 2% and remained close to the 13 level.

Broader Markets Remain Under Pressure

Despite gains in benchmark indices, broader markets continued to face selling pressure.

The Nifty Midcap 100 index declined 0.10%, while the Nifty Smallcap 100 index slipped 0.18%. 

Market breadth remained negative. On the NSE, out of 3,662 stocks traded, 1,688 stocks advanced, while 1,855 stocks declined and 119 stocks remained unchanged.

A total of 53 stocks touched their 52-week highs, whereas 242 stocks hit their 52-week lows. Around 86 stocks were locked in upper circuits, while 199 stocks closed in lower circuits.

Sectoral Performance: Nifty FMCG and PSU Index Gained Over 1%

The recovery was largely supported by buying interest across banking and consumer-focused sectors. Out of the 11 major sectoral indices, nine ended the session in positive territory.

The Nifty FMCG index emerged as the top sectoral gainer, rising 1.63% and breaking a four-session losing streak. Patanjali Foods share price witnessed strong buying interest, with the stock price gaining over 7%. The Nifty PSU Bank index also gained 1.44%. 

In contrast, information technology stocks remained under pressure. The Nifty IT index declined 1.58% during the session as investors remained cautious ahead of global monetary policy cues and concerns around near-term IT spending.

Crude Oil Prices Remain a Key Concern

Brent crude oil prices remained elevated near $108 per barrel as supply-related concerns weighed on global markets. Oil prices were impacted after Saudi Arabia suspended loading operations at its Yanbu port and reduced shipments to European markets.

Higher crude prices remain a key factor for emerging markets, as they can impact inflation expectations and currency movements.

Rupee Falls to Six Week Low Ahead of Fed Decision

The Indian rupee weakened further on September 16, closing at 95.9550 per US dollar after touching an intraday low of 95.9750. This marked its weakest level since late July.

The decline in the currency was driven by strong dollar demand from domestic companies and caution among investors ahead of the US Federal Reserve’s policy announcement. However, softer crude oil prices from recent highs and possible intervention by the Reserve Bank of India helped restrict further weakness.

European Markets Trade Higher

European equity markets traded with a positive bias during the session as investors tracked global cues and awaited further clarity from upcoming macroeconomic developments.

Germany’s DAX traded at 25,471.00, gaining 47.55 points or 0.19%. The UK’s FTSE 100 advanced 57.61 points or 0.54% to 10,715.74, while France’s CAC 40 rose 32.89 points or 0.41% to 8,123.17.

US Futures Indicate Positive Opening

US stock futures traded higher ahead of the market opening, suggesting a firm start for Wall Street.

Dow Jones futures gained 78 points or 0.15% to trade at 52,604.00.

S&P 500 futures advanced 15.75 points or 0.21% to 7,671.75, while Nasdaq 100 futures increased 120.25 points or 0.41% to 29,367.