Sensex rallies 1,615 pts in Sept, Nifty near 25K; investors gain ₹12.4 lakh crore in 8 sessions

Indian benchmark indices, Sensex and Nifty, advanced on Wednesday, marking their third consecutive session of gains amid rising optimism that the U.S. Federal Reserve may announce a rate cut next week. The 30-share BSE Sensex climbed 324 points, or 0.40%, to close at 81,425, while the NSE Nifty gained 104 points, or 0.42%, to settle at 24,973.

The domestic equity market has sustained its positive momentum through September, with both indices closing higher in six out of eight trading sessions so far this month. Losses were limited to just two days, September 2 and September 5, when the benchmarks slipped marginally. Overall, the Sensex has advanced 1,615 points, while the Nifty has added more than 546 points in the first eight sessions of September.

According to market analysts, sentiment has been lifted by GST rationalisation measures, S&P’s credit rating upgrade, and easing geopolitical risks, which have reinforced investor confidence in Indian equities.

"Renewed optimism around ongoing trade negotiations between India and the US lifted market sentiment. Anticipation of stronger H2FY26 earnings, driven by GST rationalisation and the benefits of monetary easing, is providing resilience to valuations,” said Vinod Nair, Head of Research, Geojit Investments.

“The IT index extended its outperformance on hopes of a potential Fed rate cut next week and a revival in technology spending. Investors remain focused on the progress of India-U.S. trade talks for signals of a constructive resolution to tariff-related issues," he added.

The sustained rally in the Indian stock market has made investors richer by over ₹12.4 lakh crore in eight sessions, as the overall market capitalisation of BSE-listed companies rose to ₹456.57 lakh crore from ₹444.17 lakh crore at the end of trade on August 29, 2025.

Last month, the Sensex and Nifty50 ended at 79,810 and 24,427, respectively, down nearly 1.5% each, impacted by U.S. tariffs and geopolitical tensions, sustained foreign fund outflows, lacklustre earnings reports, and valuation concerns.

After 11 sessions of persistent outflows, foreign portfolio investors (FPIs) turned net buyers in the Indian equity market on September 9, pumping in ₹2,050 crore, according to NSDL data. The trend reversal was driven by robust buying in IT stocks, aided by favourable global cues and renewed investor confidence in large-cap counters.

This comes after a fund outflow of over ₹30,000 crore in the previous 11 sessions. So far in 2025, FPIs have withdrawn ₹2.22 lakh crore from Indian equities on a year-to-date (YTD) basis.

On the other hand, domestic institutional investors (DIIs) have continued their support for Indian equities, with net investments of ₹16,541 crore so far in September. Overall, they have infused more than ₹5 lakh crore into the market in CY25, remaining net buyers in all eight months this year.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)