Markets opened cautiously on Thursday, September 17, with the Nifty 50 trading at 23,250.55, up 32.95 points (0.14 per cent) from its previous close of 23,217.60, after opening at 23,195.25. The Sensex opened at 74,182.62 against a previous close of 74,336.45, and was trading at 74,395.20, up 58.75 points (0.08 per cent), even as Gift Nifty signalled a negative start to the session.
The cautious opening follows the US Federal Reserve’s decision to raise its benchmark interest rate by 25 basis points to a 3.75 per cent–4 per cent target range — its first hike since 2023 — with Chair Kevin Warsh signalling that another increase remains likely this year. Wall Street closed lower, with the S&P 500, Dow Jones and Nasdaq declining 0.7 per cent, 1.3 per cent and 0.4 per cent respectively. The US Dollar Index crossed the 100-mark and is hovering around 100.35, while the 10-year U.S. Treasury yield remains near 5 per cent.
Among Nifty 50 gainers, BEL led with its stock trading at ₹392.30, up 1.70 per cent, followed by Bajaj Finance at ₹1,019.50, up 1.32 per cent. Asian Paints gained 0.96 per cent to ₹2,439.90, Power Grid rose 0.89 per cent to ₹265.15, and Reliance Industries added 0.89 per cent to trade at ₹1,251.00.
On the losing side, ONGC fell the most, declining 1.01 per cent to ₹234.40. HCL Technologies dropped 0.93 per cent to ₹1,241.40, HDFC Bank slipped 0.88 per cent to ₹715.15, Tech Mahindra fell 0.83 per cent to ₹1,545.00, and Wipro declined 0.70 per cent to ₹165.73.
Wednesday’s session saw the IT index fall 1.55 per cent, while the FMCG index gained 1.62 per cent — the best-performing sector. Banking showed resilience, with Bank Nifty closing at 56,292.45, up 497.70 points (0.89 per cent), though it continues to trade below key resistance levels.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that while Warsh’s hawkish message that…”inflation has been too high, and has been for too long”…and that the Fed…”will deliver price stability”…could be reassuring, “high bond yields will continue to weigh on equity markets.” He added that U.S. corporate earnings remain strong, with…”new hirings, private sector earnings and business capital investment point in a good direction.”
A key concern for Indian markets is sustained foreign institutional investor selling. FIIs offloaded equities worth approximately ₹2,000 crore on Wednesday, marking six consecutive days of net selling. Domestic institutional investors partially absorbed the pressure, purchasing equities worth ₹3,900 crore. Devarsh Vakil, Head of Prime Research at HDFC Securities, flagged that the U.S. House of Representatives passed a Russia sanctions bill by 262–159 votes, giving the White House authority to impose tariffs of up to 100 per cent on goods from countries that are major buyers of Russian oil, “potentially including India.”
On the domestic inflation front, consumer price inflation rose to 4.82 per cent in August from 4.45 per cent in July, raising concerns about the Reserve Bank of India’s policy trajectory. India’s 10-year government bond yield remains elevated near 7.09 per cent.
Crude oil prices have eased marginally, with WTI trading in the $101–102 per barrel range following Saudi Arabia’s indications of additional supply, though geopolitical risks around the Strait of Hormuz keep the outlook uncertain. Brent crude stood at around $104.7 a barrel.
Technically, the Nifty has declined more than 1,650 points from its August high of 24,772. Hitesh Tailor, Technical Research Analyst at Choice Broking, noted that the RSI at 27.31 remains in oversold territory and that…”oversold conditions may support a technical rebound, although a sustained move above resistance is required for further recovery.” Key support for Nifty is placed at 23,000–23,080, with resistance at 23,300–23,450.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, cautioned that…”the short-term trend remains weak,” adding that above 23,300 the pullback could extend towards 23,400–23,500, while below that level…”weak sentiment is likely to continue.”
Asian markets are trading mixed, with Japan’s Nikkei gaining around 0.40 per cent while South Korea’s KOSPI remains largely flat. The Bank of England’s rate decision is due Thursday, with markets pricing in only a 30 per cent chance of a hike from the current 3.75 per cent.