Stock Market Update: Nifty 50 and Bank Nifty Close Above Crucial Levels; Global Focus on US Fed Rate Decision

New Delhi, September 16, 2025 (Tuesday):
Indian stock markets witnessed strong momentum on Tuesday as both Nifty 50 and Bank Nifty managed to close above their crucial resistance levels. Market analysts highlighted that the overall sentiment has turned bullish ever since Bank Nifty bounced back from its 200-day exponential moving average last week.

During the past few trading sessions, Nifty 50 consolidated around the 25,200 mark but finally managed to breach this zone today. Similarly, Bank Nifty crossed the key 55,000 level, signalling strength in the broader market.

Mild Upside Rally Expected

Market experts continue to emphasize two important points:

The trend remains bullish and bearishness currently has no place in the market.
A sharp spike is unlikely; instead, investors should expect a gradual upside rally, where indices climb steadily without giving clear signs of strong momentum.

Despite this, stock-specific action has been robust with significant accumulation seen in several frontline companies. Interestingly, daily trading patterns suggest that while markets open positive in the morning, profit booking around 11 AM keeps the indices’ movement limited. However, experts believe that strong accumulation is happening in quality stocks.

Market Breadth and Sectoral Performance

On Tuesday, advancing stocks stood at nearly 1,800 compared to about 1,000 declining stocks, indicating broad-based buying interest. Among sectors, auto, financials, and select logistics companies led the gains.

Top gainers included Redington (20% up), Godrej Philips (7% up), GE Shipping (6% up), and Aegis Logistics, while JBM Group and JPIL were among the key laggards due to profit booking after sharp rallies in the past week.

Over the last one week, Redington, Hindustan Copper, and JBM Auto have delivered double-digit returns, while counters like Netweb Technologies and JM Financial have seen notable declines.

Global Market Focus: US Fed Rate Cut

Globally, all eyes are on the US Federal Reserve’s policy meeting scheduled for September 17, 2025. Markets have already priced in a possible 0.25% rate cut, but investors are cautious about two scenarios:

If the Fed cuts more than 0.25%, it will be seen as a strong positive for global markets.

If the Fed holds rates unchanged, it could trigger heavy selling pressure and global market correction.

Analysts argue that with US inflation still elevated and economic stress increasing due to higher tariffs, the Fed is unlikely to risk maintaining current interest rates.

FII and DII Activity

Foreign Institutional Investors (FIIs) turned net buyers on September 16, purchasing equities worth ₹308 crore, while Domestic Institutional Investors (DIIs) made net purchases of ₹1,500 crore. The combined inflows stood at ₹1,800 crore, reflecting strong institutional confidence.

Interestingly, FIIs are generally cautious and prefer buying at higher levels only when they see conviction that the market has bottomed out, which further strengthens the bullish outlook.

Stock-Specific Updates

Angel One (Angel Broking): The company announced a new joint venture in the life insurance segment, acquiring a 26% stake in LivWell Holdings. Analysts believe this move reflects diversification beyond broking, especially after the government recently reduced insurance premiums to boost customer adoption.

Antenl Ltd: The defence technology company secured a ₹9.92 crore order from Garden Reach Shipbuilders to deliver satellite communication products by June 2026. The firm continues to focus on RF systems, defence electronics, and radar technologies.

Cummins India: Brokerage house Sharekhan has given a “Buy” rating on the stock with a target price of ₹4,500, citing strong demand in data centers, real estate, and manufacturing sectors. The stock closed at ₹4,111 today, and technical analysts expect a breakout from the rounding bottom pattern.

Technical Outlook

Nifty 50 is currently trading above all key short, medium, and long-term moving averages, with RSI above 60, indicating strength. A “W” pattern is also forming on the charts, suggesting further upside potential. However, the only possible risk factor remains the US Fed’s policy outcome.

✅ Key Takeaway: Indian markets remain bullish with steady accumulation across quality stocks. Nifty 50 and Bank Nifty’s breakout above key resistance levels signals strength, while global investors await the crucial US Fed interest rate decision tomorrow, which could set the next big direction for world markets.