Markets extended their winning streak for the seventh consecutive session on Thursday, with the Nifty 50 breaking above the psychologically significant 25,000 mark amid renewed optimism over US-India trade talks and expectations of a Federal Reserve rate cut. The benchmark index closed at 25,005.50, gaining 32.40 points or 0.13 per cent, while the Sensex settled at 81,548.73, up 123.58 points or 0.15 per cent.
The day’s trading was marked by cautious optimism as investors weighed positive developments in trade relations against persistent currency pressures and mixed global cues. “Today, the Indian stock market closed flat, with the Sensex ending up 124 points at 81,548.73 (+0.15 per cent) and the Nifty finishing 32 points higher at 25,005.5 (+0.13 per cent), holding above the 25,000 mark,” said Vaibhav Vidwani, Research Analyst at Bonanza Group.
Five factors drove Thursday’s rally, led by trade and Fed hopes
Five key factors drove Thursday’s rally. First, renewed expectations of improved US-India trade relations provided underlying support after recent diplomatic signals. Second, sustained strength in domestic consumption-focused stocks continued to attract investor interest. Third, anticipation of a dovish Federal Reserve stance at next week’s policy meeting boosted sentiment. Fourth, the government’s announcement of GST reforms and other domestic policy measures supported market confidence. Fifth, technical buying emerged as the Nifty crossed the crucial 25,000 resistance level.
Among individual stocks, Adani Enterprises led the gainers with a surge of 2.90 per cent to ₹2,408.00, followed by Shriram Finance, which rose 2.55 per cent to ₹620.20. NTPC gained 1.80 per cent to ₹331.50, while Axis Bank advanced 1.64 per cent to ₹1,087.60 and Power Grid Corporation climbed 1.22 per cent to ₹286.40. On the losing side, Bajaj Auto declined 1.35 per cent to ₹9,119.00, Infosys fell 1.33 per cent to ₹1,512.20, Eicher Motors dropped 1.14 per cent to ₹6,758.50, Titan Company shed 1.12 per cent to ₹3,580.00, and SBI Life Insurance slipped 1.10 per cent to ₹1,813.60.
Sectoral performance mixed
Sectoral performance remained mixed throughout the session. The Nifty Energy index emerged as the top performer, rallying 0.88 per cent, followed by Nifty PSU Bank, which gained 0.74 per cent and Nifty Media, which advanced 1.02 per cent. “Sectorally, energy, PSU banks, oil & gas, and media managed to gain between 0.5 per cent – 1 per cent, while the IT and auto sectors trailed behind,” Vidwani noted. The Nifty IT index declined 0.50 per cent as technology stocks faced continued pressure, while the Nifty Auto index retreated 0.33 per cent.
The broader market showed mixed signals, with market breadth remaining balanced. Out of 4,281 stocks traded on BSE, 2,019 advanced while 2,103 declined, with 159 remaining unchanged. A total of 113 stocks hit their 52-week highs compared to 42 touching 52-week lows. The Nifty Next 50 gained 0.33 per cent to 67,974.70, while the Nifty Bank advanced 0.24 per cent to 54,669.60.
Rupee weakens to 88.40
Currency and commodity markets presented challenges as the Indian rupee weakened significantly against the dollar. “Rupee traded weak by 0.35 per cent at 88.40 as mixed FII flows and a firmer dollar index near 97 kept pressure intact,” said Jateen Trivedi, VP Research Analyst at LKP Securities. The rupee’s decline to near record lows of 88.45 against the US dollar underlined persistent external headwinds and concerns over tariff issues.
Gold sees profit booking after sharp recent rally
In the commodities space, gold prices witnessed minor profit-booking from recent highs. “Gold prices saw minor profit booking from highs of $3640 and ₹1,09,000 as anticipation builds ahead of next week’s Fed policy, with uncertainty over a 0.25 per cent or 0.50 per cent rate cut,” Trivedi explained. “After a sharp 10 per cent rally in the last 15 sessions, prices are showing exhaustion near $3650 and ₹1,09,000.”
Technical analysts remained constructive on the market’s near-term prospects despite the subdued intraday movement. “On Thursday, the benchmark index Nifty 50 traded within a tight range of just 97 points, reflecting a lack of strong directional momentum. Despite the subdued intraday movement, the index managed to close the session with a modest gain of 0.13 per cent, settling just above the psychologically significant 25000 mark,” said Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities.
SEBI board meet may propose changes in derivatives
Market participants are now focusing on upcoming regulatory developments, particularly SEBI’s board meeting on Friday. “The spotlight now shifts to SEBI’s crucial board meeting on Friday, where the regulator may announce significant changes in the derivatives segment. Reports suggest a consultation paper could propose ending weekly expiries for futures and options contracts,” noted Hariprasad K, Research Analyst at Livelong Wealth.
Foreign institutional investor activity remained subdued with net selling of approximately ₹115 crore, while domestic institutional investors provided support by infusing around ₹5,000 crore. The India VIX continued to decline, settling at 10.34, indicating reduced market volatility expectations.
Analysts see consolidation
Looking ahead, market participants expect continued consolidation around current levels with a positive bias. “Going ahead, the zone of 25080-25100 will act as an immediate hurdle for the index. Any sustainable move above the 25100 level will lead to a sharp upside rally upto the 25240 level,” Shah projected. Key support levels are placed at 24,900-24,870, with investors closely monitoring upcoming US inflation data and the Federal Reserve’s policy decision next week for further directional cues.
Published on September 11, 2025
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