16 September,2025 05:34 PM IST | Mumbai | mid-day online correspondent
A rally in Asian and US markets also boosted domestic sentiment ahead of this week’s Federal Reserve policy meeting. Representational pic
Stock markets on Tuesday bounced back, with the benchmark Sensex climbing nearly 595 points on renewed optimism following the resumption of trade talks between India and the United States, reported news agency PTI.
The 30-share Bombay Stock Exchange (BSE) Sensex surged 594.95 points, or 0.73 per cent, to settle at 82,380.69, driven by buying in auto and Information Technology (IT) stocks. During the day, it had touched a high of 82,443.48, up 657.74 points or 0.80 per cent.
Meanwhile, the 50-share National Stock Exchange (NSE) Nifty rose 169.90 points, or 0.68 per cent, to reach 25,239.10, reported PTI.
On Monday, the Sensex had slipped 118.96 points, or 0.15 per cent, to settle at 81,785.74 after five days of gains. Meanwhile, Nifty fell 44.80 points, or 0.18 per cent, to 25,069.20, bringing an end to eight consecutive day of gains.
Chief negotiators of India and the US have begun discussions on a proposed trade agreement to resolve issues arising from steep tariffs that have created uncertainty for exporters, an official said.
A rally in Asian and US markets also boosted domestic sentiment ahead of this week's Federal Reserve policy meeting, reported PTI.
Among the stocks in BSE, Kotak Mahindra Bank emerged as the biggest gainer, rising 2.55 per cent. Larsen & Toubro, Mahindra & Mahindra, Maruti, Bharti Airtel and Tata Steel were among the other major gainers.
However, Asian Paints and Bajaj Finance ended in the red, reported PTI.
"The domestic market sustained its recovery trend, supported by favourable global cues on expectations of a 25 bps rate cut in the forthcoming US Fed policy decision and renewed optimism surrounding the resumed India-US trade negotiations. Auto and consumer durable stocks outperformed ahead of the rollout of new GST rates and festive-driven demand expectations," Vinod Nair, head of research, Geojit Investments Limited, said.
The BSE smallcap index rose 0.66 per cent, while the midcap index gained 0.62 per cent.
Among the sectoral indices, services jumped the most at 1.67 per cent, followed by telecommunication (1.50 per cent), auto (1.43 per cent), tech (1.05 per cent), industrials (1.05 per cent), realty (1.02 per cent), consumer discretionary (0.96 per cent) and commodities (0.90 per cent).
Fast-moving consumer goods (FMCG) was the only laggard.
"The rally was driven by strong gains in auto, realty, and financial stocks, as optimism grew around ongoing India-US trade talks and expectations of a US Federal Reserve rate cut later this week," Gaurav Garg, Research Analyst, Lemonn Markets Desk, said, adding, "Global cues also remained supportive, with investors betting on a 25-basis-point cut by the Fed in its policy meeting concluding September 17."
"Indian benchmark indices on Tuesday traded higher in line with Asian peers, as investors took comfort from progress in US trade talks. Market participants now await the US Federal Reserve's policy decision for further cues," Bajaj Broking Research noted.
In Asia, South Korea's Kospi, Japan's Nikkei 225 and Shanghai's SSE Composite ended higher, while Hong Kong's Hang Seng closed lower.
European markets were trading lower and US indices ended higher on Monday.
Meanwhile, global oil benchmark Brent crude slipped 0.55 per cent to USD 67.07 a barrel.
Foreign institutional investors (FIIs) sold equities worth Rs 1,268.59 crore on Monday, exchange data showed.
(With PTI inputs)
