New Delhi [India], September 17 (ANI): Indian stock benchmarks continued their upward trajectory on Wednesday, driven by optimism over GST reforms, renewed efforts for an India-US trade deal, and moderate inflation.
The Sensex closed at 82,693.71 points, up 313.02 points or 0.38 per cent, while the Nifty ended at 25,330.25 points, gaining 91.15 points or 0.36 per cent. Sectoral indices showed mixed performance, with auto, FMCG, PSU banks, and oil & gas posting notable gains, while metals and consumer durables saw declines, according to NSE data.
“Indian equities maintained their upward momentum, aided by the revival of India-US trade talks and efforts to strengthen bilateral ties,” said Vinod Nair, Head of Research, Geojit Investments Limited. “Strong domestic inflows, currency stability, and favourable geopolitical dynamics continue to create a constructive near-term outlook for the market.”
The highlight of the day was the market debut of Urban Company, an on-demand home services platform. The stock surged 64 per cent from its issue price to close at Rs 169 per share. “Strong listing was above our expectations; despite the listing pop, Urban Company presents a compelling long-term structural story and can serve as a proxy for the growing demand in the home services segment across its key geographies,” noted Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Despite perceptions of a high valuation, the IPO witnessed strong investor demand, led by Qualified Institutional Buyers (QIBs) at 147x and Non-Institutional Investors (NIIs) at 77x, with retail participation at 41x. Tapse advised allotted investors with higher risk appetite to hold for long-term gains, while non-allotted investors could adopt a ‘wait and watch’ approach for potential entry points.
Broader markets also drew support from expectations of a possible US Federal Reserve rate cut in the upcoming policy review. Investor sentiment improved further following the first phone call between US President Donald Trump and Prime Minister Narendra Modi since June. Trump extended birthday wishes to PM Modi and expressed gratitude for India’s support in ending the Russia-Ukraine conflict, calling Modi’s efforts “tremendous.”
Meanwhile, US officials led by Assistant US Trade Representative Brendan Lynch held “positive and forward-looking” discussions with India’s Department of Commerce, deciding to intensify efforts to conclude a mutually beneficial trade agreement soon.
“Encouraging signals from India-US trade talks rekindled buying interest across sectors. Market focus will now shift to the US Federal Reserve’s policy outcome and outlook, with markets widely pricing in a 25-basis point rate cut,” said Sudeep Shah, Head – Technical Research and Derivatives, SBI Securities. (ANI)
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