Market Wrap, Sept 17: NIFTY50 ends above 25,300, SENSEX up 313 points, PSU bank stocks lead gains; SBI up 3%

The Indian equity benchmark indices ended higher for the second consecutive session on Wednesday, September 17, after a rangebound session, driven by gains in PSU banking and IT stocks, supported by optimism over US-India trade talks.

Investor sentiment was buoyed as India and US chief negotiators began talks on a proposed trade agreement aimed at resolving issues related to steep tariffs, which have been a major concern for exporters.

The market participants worldwide are also closely watching the US Federal Reserve’s decision on a potential rate cut.

Among the PSU banking stocks, State Bank of India rose 3.05% as the lender completed the divestment of a 13.19% stake in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC). Nifty Bank settled 0.63% higher at the 55,493.30 level.

According to exchange data, on Tuesday, the foreign institutional investors (FIIs) bought equities worth ₹308.32 crore on a net basis, while the domestic institutional investors (DIIs) purchased ₹1,518.73 crore worth of equities.

Globally, Asian stocks settled mixed as investors remained cautious ahead of Wednesday’s Federal Reserve interest rate decision.

Japan's Nikkei fell 0.17%, and South Korea's KOSPI settled 1.06% lower. However, Hong Kong's Hang Seng surged 1.86%, and the Shanghai Composite also gained 0.37%.

On Wall Street, the three main indices closed lower. The Dow Jones Industrial Average declined 125.55 points, or 0.27%, to 45,757.90; the S&P 500 fell 8.52 points, or 0.13%, to 6,606.76; and the Nasdaq Composite lost 14.79 points, or 0.07%, to 22,333.96.

As many as 3,177 stocks traded on the NSE on Wednesday. Out of this, 1,764 advanced and 1,315 stocks declined, while 98 scrips remained unchanged.

This indicated that the market breadth was in favour of advances.

A total of 84 stocks hit their 52-week highs, while 24 stocks touched their one-year lows. Besides, 107 stocks hit their upper circuit limits, and 52 touched their lower circuit bands on Wednesday.

NSE-listed firms' market capitalisation stood at ₹461.70 lakh crore at the end of the session.

India VIX, the volatility gauge, stood at 10.25 levels, slipping 0.24%.

The Nifty Smallcap 100 index gained 0.68% to end at 18,423.20 levels, while the Nifty Midcap 100 index closed at the 58,848.55 level, marginally rising 0.08%.

Among sectors, Nifty PSU Bank led the gains, rising 2.61%. It was followed by Nifty IT (0.65%), Nifty Oil & Gas (0.63%), Nifty Auto (0.55%), and Nifty Realty (0.41%).

However, Nifty Metal (-0.50%), Nifty Consumer Durables (-0.30%), Nifty FMCG (-0.14%), and Nifty Pharma (-0.10%) were the top decliners.

Tata Consumer Products was the most contributing stock, surging 3.99%, followed by State Bank of India (3.05%), Bharat Electronics (2.21%), Kotak Mahindra Bank (1.45%) and Maruti Suzuki (1.39%).

On the other hand, HDFC Life Insurance (-1.08%), Bajaj Finserv (-0.98%), Titan (-0.91%), SBI Life Insurance (-0.87%) and Hindalco Industries (-0.85%) were among the top laggards on the 50-share index.