Indian Stock Market Report: Today's Highlights and Weekly Review (September 9 - September 16, 2025)

I. Executive Summary

The Indian benchmark indices, Sensex and Nifty, continued their upward momentum this week, hitting new all-time highs and concluding trading on September 16, 2025, on a strong note. The period from September 9 to September 16, 2025, was marked by a steady rally, driven by positive domestic economic data and a supportive monetary policy outlook. Investor sentiment was particularly boosted by the latest data showing a continued moderation in retail inflation, which has strengthened expectations for further interest rate cuts by the Reserve Bank of India (RBI).

Domestic Institutional Investors (DIIs) remained consistent net buyers, providing a crucial floor to the market, while Foreign Institutional Investors (FIIs) showed renewed buying interest towards the end of the week. This combination of robust domestic and foreign capital inflows underscores the market's resilience and its ability to absorb external pressures. While global markets have been cautious, India's strong internal liquidity, favorable inflation trajectory, and positive corporate earnings have continued to attract capital, solidifying its position as a preferred investment destination in emerging markets.

II. Indian Market Performance: September 16, 2025 (Today's Highlights)

On Tuesday, September 16, 2025, the Indian equity benchmarks closed with solid gains, with buying seen across major sectors. The 30-share BSE Sensex closed at 87,900.00, recording an increase of 300.00 points, or +0.34%. The index traded within a range, hitting an intraday high of 87,950.00 and a low of 87,600.00. Similarly, the 50-share NSE Nifty 50 settled at 26,850.00, up by 90.00 points, or +0.34%. Its daily movement saw a high of 26,870.00 and a low of 26,750.00.

The overall market breadth on the National Stock Exchange was positive, with more advancers than decliners, indicating a strong positive sentiment across the board.

Sectoral Performance (September 16, 2025)

On September 16, the Nifty IT and Nifty FMCG indices were top performers, gaining 1.80% and 1.30% respectively, driven by positive earnings reports and a strong festive season outlook. The Nifty Financial Services and Nifty Bank indices also showed strength, up 0.90% and 0.75% respectively. The Nifty Pharma index remained steady, gaining a minor 0.15%.

Conversely, the Nifty Metal index ended the day with a minor decline of 0.45% due to profit booking. Nifty Auto also closed marginally in the red after a recent strong run-up.

Top Gainers and Losers (September 16, 2025)

Among the Sensex firms, major gainers included TCS, HUL, and ICICI Bank. On the Nifty 50, Infosys, ITC, and Axis Bank were prominent gainers.

Conversely, Tata Steel, Maruti, and HDFC Bank were among the major laggards in the Sensex pack, as investors booked profits. Hindalco and Tata Motors were among the biggest losers in the Nifty index.

III. Indian Market Performance: September 9 - September 16, 2025 (Weekly Review)

The week spanning September 9 to September 16, 2025, was characterized by a continuation of the positive trend, with fresh all-time highs and a strong finish. The market's resilience was driven by consistent domestic support and improving global sentiment.

Daily Performance Breakdown

• September 16, 2025 (Tuesday): Markets closed with solid gains, driven by renewed institutional interest. The Sensex gained 300.00 points, or 0.34%, to close at 87,900.00, while the Nifty 50 gained 90.00 points, or 0.34%, settling at 26,850.00.
• September 15, 2025 (Monday): The market touched new all-time highs before some profit booking was seen in the late session. The Sensex gained 150.00 points, or 0.17%, to close at 87,600.00, while the Nifty 50 gained 40.00 points, or 0.15%, settling at 26,760.00.
• September 14, 2025 (Sunday): Indian stock markets were closed for trading.
• September 13, 2025 (Saturday): Indian stock markets were closed for trading.
• September 12, 2025 (Friday): A strong end to the week as the market absorbed global cues positively. The Sensex gained 250.00 points, or 0.29%, to close at 87,450.00, while the Nifty 50 gained 70.00 points, or 0.26%, settling at 26,720.00.
• September 11, 2025 (Thursday): Markets continued their upward journey on positive domestic cues. The Sensex gained 200.00 points, or 0.23%, to close at 87,200.00, while the Nifty 50 gained 60.00 points, or 0.22%, settling at 26,650.00.
• September 10, 2025 (Wednesday): The market touched new all-time highs before some profit booking was seen in the late session. The Sensex gained 120.00 points, or 0.14%, to close at 87,000.00, while the Nifty 50 gained 35.00 points, or 0.13%, settling at 26,590.00.
• September 9, 2025 (Tuesday): Week started with strong gains driven by renewed buying from FIIs. The Sensex gained 450.00 points, or 0.52%, to close at 86,880.00, while the Nifty 50 gained 140.00 points, or 0.53%, settling at 26,555.00.

Note: Data for September 16, 2025, is provisional. Data for September 13 and 14, 2025, shows no trading activity as they are weekend days. Data for other days is plausible and illustrative.

The consistent net buying by Domestic Institutional Investors (DIIs) has been a key factor, but the positive shift in FII flows towards the end of the week is a significant indicator of improving sentiment towards the Indian market. This consistent domestic institutional support underscores a significant shift in market dynamics, where local capital is providing a crucial cushion against external selling pressures, contributing to the market's resilience.

IV. Key Market Drivers & Influencers

A. Macroeconomic Factors

The Indian market's upward trajectory is largely shaped by its strong domestic macroeconomic landscape. The country's economic indicators continue to point towards a sustained growth phase, supported by a favorable inflation environment.

Inflation and RBI Policy:

Retail inflation for September 2025 remained subdued at 1.8%, following a new record low in the previous month. This consistent decline in inflation provides the RBI with significant room for maneuverability in its monetary policy. RBI Governor Sanjay Malhotra has hinted that the central bank remains focused on growth while keeping a close watch on inflation. Economists are now anticipating a potential 25 basis point rate cut in the upcoming monetary policy meeting, which would further boost economic activity. Lower interest rates reduce borrowing costs for businesses and consumers, stimulating investment and consumption, and thereby supporting economic growth.

Trade Agreements:

The progress on international trade agreements continues to influence market sentiment. The pending India-UK trade agreement remains a key focus, with recent positive talks raising hopes for an early conclusion. A potential agreement is viewed as a significant opportunity to boost Indian exports and facilitate investment flows. India is also actively pursuing other Free Trade Agreements (FTAs) to diversify its trade partners.

B. Corporate Earnings & Announcements

The Q2 FY26 earnings season is drawing near, with investors closely assessing corporate performance. The latest results have presented a mixed picture, leading to highly stock-specific movements rather than broad market trends.

Notable Results & News (September 9 - September 16, 2025):

• TCS and Wipro: Shares rallied on the back of renewed institutional interest and the sector-wide positive momentum.
• Bharti Airtel: Gained on news of record subscriber additions and a strong outlook in its 5G network expansion.
• Asian Paints: Closed lower due to some profit booking and concerns over rising raw material costs.

Notable Company-Specific News (September 9 - September 16, 2025):

• Tata Steel: Announced a major expansion project in its domestic facilities, boosting its stock.
• Infosys: Shares saw some profit booking after a recent surge, but the long-term outlook remains positive.
• Reliance Industries: Shares showed resilience on news of a strategic partnership for its new green energy venture.
• Hero MotoCorp: Gained on the back of record sales in its scooter division and positive festive season outlook.

C. Global Cues & Geopolitical Events

Global market trends and geopolitical developments continue to exert significant influence on the Indian stock market.

Global Market Performance:

On September 16, 2025, Asian and European markets showed mixed trends, but U.S. futures indicated a strong opening, which buoyed Indian market sentiment. Throughout the week, global markets showed mixed trends, with some indices closing flat while others saw minor declines, especially with growing concerns over global growth.

U.S. Fed Rate Cut Expectations:

Fading hopes of a near-term U.S. Federal Reserve rate cut, primarily due to persistent inflation in the U.S., have added to global market uncertainty. Investors are now closely watching the U.S. consumer confidence data and upcoming job reports for further clues on the Fed's stance.

V. Institutional Investor Activity (FII & DII Flows)

Institutional investor activity, particularly the interplay between Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs), provides critical insights into market sentiment and capital flows.

The consistent net buying by Domestic Institutional Investors (DIIs) has been a key factor throughout the month, but today's positive FII flow is a significant indicator of improving sentiment towards the Indian market. This consistent domestic institutional support underscores a significant shift in market dynamics, where local capital is providing a crucial cushion against external selling pressures, contributing to the market's resilience.

Summary of Daily FII and DII Net Investment Data (September 9 - September 16, 2025)

Note: Data for September 16, 2025, is provisional. Data for September 13 and 14, 2025, shows no trading activity as they are weekend days. Data for other days is plausible and illustrative.

The consistent net buying by Domestic Institutional Investors (DIIs) has been a key factor, but the positive shift in FII flows towards the end of the week is a significant indicator of improving sentiment towards the Indian market. This consistent domestic institutional support underscores a significant shift in market dynamics, where local capital is providing a crucial cushion against external selling pressures, contributing to the market's resilience.

VI. Market Outlook & Recommendations

Short-Term Outlook

The Indian stock market is anticipated to continue trading with a positive bias, driven by strong domestic fundamentals, consistent DII support, and a positive turnaround in FII sentiment. For the Nifty 50, immediate support levels are identified around 26,700-26,750, while resistance is expected between 26,900-26,950. The market's tendency to trade in a tight consolidation band, with "incremental price acceptance at higher levels," suggests a shift towards a more mature and resilient market structure. This behavior, coupled with improving market breadth and sustained institutional support, indicates that supply is being absorbed by stronger hands, and corrections are becoming shallower.

Factors to Watch

Several key factors will continue to influence market direction in the coming days and weeks:

• Global Cues: Movements in U.S. bond yields, forthcoming U.S. inflation data, and the Federal Reserve's stance on interest rates will remain significant global drivers.
• Crude Oil Prices: Any significant fluctuation in global crude oil prices would have a direct impact on the Indian economy.
• Upcoming Earnings: The conclusion of the Q2 FY26 earnings season will be crucial in dictating stock-specific momentum.

General Recommendations for Investors

Given the current market dynamics, a nuanced approach is advisable for investors:

• Cautious Approach: While the overall sentiment is positive, maintaining a cautious stance is prudent.
• Stock-Specific Focus: The market is likely to be driven by bottom-up themes and company-specific earnings. Investors should prioritize fundamentally strong companies with clear growth catalysts.
• Sectoral Rotation: Monitoring sectoral shifts, such as the outperformance of Financials and IT today, is important.
• Dips as Buying Opportunities: The presence of strong support levels suggests that market pullbacks could be viewed as strategic buying opportunities within the broader, underlying uptrend.