Nifty 50 Market Update Insights for Today

The Indian stock market extended its winning streak on September 18, 2025, as the Nifty 50 index rose by 93.35 points, or 0.37%, to close at 25,423.60. Backed by positive global cues and optimism around renewed India-US trade talks, key sectors such as pharma and IT led the charge. The benchmark Sensex, comprising 30 blue-chip stocks, surged 320.25 points (0.39%) to finish at 83,013.96—its highest levels since early July.

Fed Rate Cut Spurs Buying Momentum

The market rally was chiefly fueled by the US Federal Reserve’s decision to reduce its benchmark interest rate by 25 basis points to a 4–4.25% range. This dovish monetary stance has instilled confidence among investors, prompting buying in rate-sensitive sectors and export-oriented stocks. Historically, Federal Reserve rate cuts have offered liquidity boosts leading to improved equity sentiment globally, which was reflected in both Asian and European markets on the day.

Sector Winners: Pharma and IT Shine

Among Nifty sectors, pharma stocks emerged as the top performers, with the Nifty Pharma index climbing 1.5%. Pharmaceutical giants like Sun Pharma and Cipla posted solid gains, supported by robust earnings and growth prospects. The Nifty IT index also advanced by 0.83%, led by Infosys, Wipro, and Coforge. These sectors attracted investors valuing defensive growth amid global uncertainties.

Financial stocks showed mixed results. While HDFC Life Insurance rallied over 2%, Bajaj Finance and Tata Consumer Products slipped slightly. The banking space saw modest gains from PSU banks, supported by stable credit growth expectations. Meanwhile, sectors such as media and PSU banks were among the laggards.

Key Stock Movers on September 18

Top gainers on the Nifty 50 included Eternal, surging nearly 3%, followed closely by HDFC Life, Sun Pharma, Cipla, and Infosys. On the downside, Coal India, Bajaj Finance, Trent, Tata Motors, and Tata Consumer Products were among the major drags on the index.

Market Breadth and Volatility

Market breadth was positive, with around 1,606 out of 3,134 NSE-listed stocks closing higher, reflecting broad-based buying interest. The India VIX, a gauge of market volatility, eased by more than 3.5% to 9.89 points, signalling reduced investor fear and enhanced market stability.

Stock market trading screen showing fluctuations

Technical Outlook: Support Holds, Resistance Ahead

Technically, the Nifty demonstrated resilience by holding strong support levels near 25,300. Analysts suggest that as long as the index remains above this mark, the bullish momentum is likely to persist. The immediate resistance level stands near 25,500, and a decisive breakout here could propel the benchmark toward the 25,600–25,625 range. Investors are advised to adopt a buy-on-dips strategy amid this positive setup.

Market Capitalisation and Global Impact

The NSE-listed companies’ total market capitalization crossed an impressive ₹462.57 lakh crore (approximately $5.25 trillion), underscoring the market’s robust standing. Indian markets traded in harmony with Asian peers, driven by optimism around the US Fed’s stimulus measures and easing global rate pressures.

In summary, the Nifty 50’s upward momentum on September 18, 2025, was powered by the US Federal Reserve’s rate cut and strong performances from Pharma and IT stocks. With positive technical signals and supportive global fundamentals, the market seems poised for further gains in the near term.