The Indian stock market delivered another stellar performance on Friday, with the Nifty 50 marking its eighth consecutive day of gains—the longest winning streak in five months. As investors eagerly await the Federal Reserve’s policy decision next week, market sentiment remains buoyant with multiple catalysts driving the bull run.
Market Summary: Strong Closing Numbers
Key Index Performance:
- Nifty 50: 25,114 (+109 points, +0.43%)
- Sensex: 81,905 (+356 points, +0.43%)
- Bank Nifty: 54,809 (+140 points, +0.26%)
- India VIX: 10.12 (-2.32%)
The benchmark Nifty 50 has successfully maintained its position above the psychologically important 25,000 mark while staying comfortably above key moving averages including the 21 DMA (24,802), 50 DMA (24,904), and 100 DMA (24,851).
Federal Reserve Rate Cut: The Primary Market Driver
The trading session was dominated by speculation around the Federal Reserve’s upcoming policy meeting on September 17th. Market participants are increasingly betting on an aggressive 50 basis point rate cut, which could provide additional tailwinds to global markets including India.
This dovish expectation from the Fed has created a risk-on sentiment globally, with investors moving towards emerging markets and equity assets. The potential for a more significant rate cut than initially anticipated could surprise even the most optimistic market participants.
Global Market Tailwinds Support Indian Equities
Two major positive catalysts supported the Indian market rally:
1. Record Highs in US Markets
Overnight trading saw all major US indices close at record highs:
- S&P 500 hit new all-time high
- Dow Jones reached record closing levels
- Nasdaq also closed at historic peaks
2. US-India Trade Relations Improvement
Reports suggest that the US and India are eyeing a trade reset, with the Trump administration planning talks with Prime Minister Modi. This softening stance could reduce tariff-related uncertainties that have previously weighed on market sentiment.
However, some caution prevailed as reports emerged that Trump has urged the EU to impose tariffs of up to 100% on Indian and Chinese goods, creating a mixed backdrop for trade relations.
Sectoral Performance: Metals Lead the Charge
Top Performing Sectors:
- Nifty Metal: +0.93% (approaching all-time highs)
- Nifty Financial Services: +0.82%
- Nifty Pharma: +0.53%
Underperforming Sectors:
- Nifty FMCG: -0.71%
- Nifty Media: -0.39%
- Nifty PSU Banks: -0.27%
The metal sector’s outperformance was particularly noteworthy, with several stocks delivering impressive gains:
- Hindustan Copper: +12.12%
- Hindustan Zinc: +3.54%
- Vedanta: +2.92%
- Hindalco Industries: +2.05%
- National Aluminium Company: +1.68%
Stock-Specific Highlights
Major Corporate Actions
Infosys Announces Massive Buyback Infosys shares gained 0.95% following the board’s approval of an ₹18,000 crore buyback program. The buyback will be executed at ₹1,800 per share (19.25% premium to previous closing price) covering up to 10 crore equity shares representing 2.41% of outstanding shares.
Reliance Industries Expands Operations RIL shares rose 0.85% after the company incorporated a new wholly-owned subsidiary named “Reliance Intelligence” on September 9, 2025.
Defence Sector Gains Momentum
- Premier Explosives: +3.06% (₹7.83 crore defence order)
- HAL: +3.55%
- BDL: +5.69%
- BEL: +3.7%
Market Breadth and Technical Analysis
The market breadth remained favorable to bulls with 31 advancing stocks against 19 declining ones. Mid-cap and small-cap indices showed modest gains with Nifty Mid-cap up 0.32% and Nifty Small-cap advancing 0.64%.
Technical Outlook for Nifty 50
Current Position: 25,114 Immediate Resistance: 25,322 / 25,670 Strong Support: 25,000 / 24,870 Major Support: 24,119 (200 DMA)
The index is maintaining a positive trend above all key moving averages. The next major target for bulls is the 25,670 mark (June 30th high), while confirmation of major strength will come only above 25,124.
Top Performers and Laggards
Bulls of the Day:
- BEL: +3.71%
- Bajaj Finance: +3.34%
- Bajaj Finserv: +2.23%
- Hindalco: +2.05%
- Eicher Motors: +1.73%
Bears of the Day:
- Eternal: -1.90%
- Hindustan Unilever: -1.53%
- IndusInd Bank: -1.02%
- Bajaj Auto: -0.97%
- Trent: -0.81%
Options Data and Currency Movement
Put-Call Ratios:
- September 16 expiry: 1.33
- September 30 expiry: 1.12
USD/INR Futures: 88.34 (-0.18%)
The PCR data suggests continued bullish sentiment among options traders, while the rupee showed marginal strength against the dollar.
Investment Ideas and Stock Recommendations
Bullish Short-Term Picks:
- Ashok Leyland
- Indian Energy Exchange (IEX)
- Vedanta Limited
Long-Term Bullish Opportunities:
- Pondy Oxides
- Netweb Technologies
- Waaree Energies
Stocks to Avoid:
- Max Financial Services
- Voltas
- Colgate Palmolive
Bearish Outlook:
- Tata Elxsi
- Titan Company
- Trent
What to Watch Next Week
All eyes will be on the domestic CPI inflation figures for August, releasing today at 5:00 PM IST. This data will be crucial in determining whether the RBI might consider a rate cut in its October meeting.
The Federal Reserve’s decision on September 17th remains the most critical event for global markets. A 50 basis point cut could provide significant momentum to the ongoing bull run in Indian equities.
Bottom Line: Bull Run Set to Continue
With Nifty successfully extending its winning streak to eight days, the technical and fundamental setup suggests the bull run is likely to continue. The immediate target of 25,155 (August 21st high) appears achievable, with the longer-term target of 25,670 well within reach if the current momentum sustains.
Investors should remain cautious of global developments, particularly around US-China-India trade relations, while keeping a close watch on the Fed’s policy direction and domestic inflation data.
Disclaimer: This analysis is for educational and informational purposes only. Stock market investments are subject to market risks. Investors should consult with registered financial advisors before making investment decisions. Past performance does not guarantee future results.