Nifty sustains above 25,300 on trade optimism; Fed decision in focus
Welcome to Aftermarket Report, a newsletter where we do a quick daily wrap-up of what happened in the markets, both in India and globally.
In our latest episode of In The Money by Zerodha video series, we explore the three main streams of market analysis: Technical, Fundamental, and Alternative data. No matter whether you trade systematically or with discretion, the decisions you make depend on the information you use. Each of these approaches gives you a different lens on the market — and when combined, they can help you form a more complete view of a stock, index, or commodity.
Market Overview
Nifty opened with a 38-point gap-up at 25,277 and extended gains in the opening hour, moving past 25,320. Through the morning session, the index held firm, consolidating within the 25,310–25,340 range.
In the second half, Nifty remained largely steady, with mild intraday dips finding support near 25,300. A late rebound lifted the index back toward the highs, and it eventually closed at 25,330.25, up 0.36%, comfortably holding above the 25,300 mark.
Market sentiment is slowly tilting from caution to optimism, supported by signs of easing U.S.-India trade tensions. Still, worries over steep 50% tariffs, persistent foreign investor outflows, and muted earnings are tempering the upside. Investors are also closely watching tonight’s U.S. Fed interest rate decision for further cues.
Broader Market Performance:
Broader markets had a bullish session today. Of the 3,177 stocks traded on the NSE, 1,763 advanced, 1,313 declined, and 101 remained unchanged.
Sectoral Performance
Nifty PSU Bank was the top gainer of the day, rising 2.61%, while Nifty Metal was the worst performer, slipping 0.50%. Out of the 12 sectoral indices, 8 closed in the green and 4 ended in the red.
Here’s the trend of FII-DII activity from the last 5 days:
Change in OI for the day
The following is the change in OI for Nifty contracts expiring on 23rd September:
The maximum Call Open Interest (OI) is observed at 25,500, followed by 25,400, suggesting strong resistance at 25,400 - 25,500 levels.
The maximum Put Open Interest (OI) is observed at 25,300, followed closely by 25,200, suggesting strong support at 25,200 to 25,100 levels.
Note: OI is subject to multiple interpretations, but generally, an increase in Call OI indicates resistance in a falling market, and an increase in Put OI indicates support in a rising market.
Source: Sensibull
Tijori is an investment research platform, and they have constructed niche indices for various themes and sub-sectors. They help you understand the market performance of narrow slices of the market. You can also track the Promoter buying and other interesting stuff like Capex activity by the companies in the Tijori App’s idea dashboard
What’s happening in India
The rupee gained 25 paise to close at 87.84/$ on Wednesday, its strongest in over two weeks, supported by upbeat equities, Fed rate cut hopes, and optimism around U.S.–India trade talks. Dive deeper
Hyundai Motor India signed a wage settlement with its recognised union for 2024–2027, effective from April 1, 2024. The agreement provides a monthly salary increase of ₹31,000, phased in over three years at 55%, 25%, and 20%. HMIL said the pact reflects mutual trust and a focus on employee welfare and long-term growth. Dive deeper
SBI has divested its 13.19% stake in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation for ₹8,889 crore at ₹21.50 per share, after securing RBI and CCI approvals. The stake sale was part of commitments made under the RBI’s 2020 reconstruction scheme, which involved a consortium of eight banks led by SBI. Dive deeper
The government raised strong objections to Vedanta’s demerger, citing concealment of details, inflated revenues, and risks to dues recovery, while Sebi flagged breaches. The Supreme Court also rejected Vedanta’s plea for extra compensation on the Talwandi Sabo project. Dive deeper
Luxury housing in India is booming while affordable supply lags, with a 10 million-home deficit that could triple by 2030. Rising prices, stagnant wages, and soaring rentals are pricing out first-time buyers despite rate cuts. Dive deeper
HCL Technologies’ software arm launched HCL Unica+, an AI-first MarTech platform designed for India’s multi-lingual digital market of over 800 million users. Already deployed by a leading bank, it manages 500 million accounts and 1.4 billion touchpoints across 28 languages. Dive deeper
Mobikwik reported a suspected ₹40 crore fraud after a system glitch let nearly 5 lakh UPI transactions bypass balance checks and PIN verification. Police have frozen ₹8 crore, arrested six men, and are probing possible insider involvement. The company said it has so far recovered ₹14 crore, with the net impact estimated at ₹26 crore. Dive deeper
DreamFolks Services has exited the domestic airport lounge business with immediate effect, terming the impact material. Other domestic services and global lounge operations will continue, with discussions on alternate offerings underway. The move follows recent contract terminations by partners, including Travel Food Services, Adani Airports, and GMR Airports. Dive deeper
Mahindra Lifespace Developers has secured two society redevelopment projects in Chembur, Mumbai, with a combined gross development potential of ₹1,700 crore. The projects span 2.6 acres and 1.8 acres, adding significantly to the company’s portfolio. Dive deeper
Adani Ports and SEZ will invest ₹30,000 crore over two years to expand operations, mainly at Mundra, Dhamra, and Vizhinjam, aiming for one billion tonnes of cargo handling by 2030. The plan covers ports, logistics, renewables, and marine services, with a focus on berth and terminal expansion. Dive deeper
ESAF Small Finance Bank plans to raise ₹300–500 crore in tier-1 capital to strengthen adequacy and fund growth, with details to be decided on September 20. The bank is shifting toward secured lending while cutting microloans, which fell 31% year-on-year. Dive deeper
What’s happening globally
Brent crude fell to $68 per barrel as markets weighed reports of Ukrainian strikes on Russian energy assets, later denied by Transneft. European officials called for faster cuts in Russian fuel imports. US crude inventories dropped 3.42 million barrels, more than double forecasts, while traders awaited the Fed’s policy decision. Dive deeper
Gold traded near $3,670 per ounce after briefly testing the $3,700 level, as markets awaited the Fed’s policy decision with a 25 bps cut widely expected. Softer payroll data reinforced expectations for multiple cuts this year. Dive deeper
The UK’s inflation rate stayed at 3.8% in August, matching July and forecasts, with declines in transport, services, and clothing offset by higher food, fuel, and hospitality costs. Monthly CPI rose 0.3% after a 0.1% gain in July. Core inflation eased to 3.6% from 3.8%. Dive deeper
US housing starts fell 8.5% in August to 1.307 million units, one of the lowest levels since 2020. Single-family and multi-family starts both declined, with single-family at a 13-month low. Sharp drops in the South and Midwest offset gains in the West and Northeast. Dive deeper
The average 30-year US mortgage rate fell to 6.39% in the week ending September 12, its lowest since October 2024. Rates declined for a third week, tracking lower Treasury yields amid Fed rate cut expectations. Mortgage applications rose 29.7%, with refinancing surging 58%. Dive deeper
South Africa’s inflation eased to 3.3% in August from 3.5% in July, below market expectations of 3.6%. The slowdown was driven by softer food prices and a sharper fuel cost decline. Core inflation inched up to 3.1%, while monthly CPI slipped 0.1%. Dive deeper
Bank Indonesia cut its benchmark rate by 25 bps to 4.75% in September, its lowest since October 2022, against expectations of a hold. The move, part of 150 bps easing since last year, reflects stable inflation, a firm rupiah, and growth support. GDP rose 5.12% in Q2, while inflation eased to 2.31% in August. Dive deeper
Tencent raised 9 billion yuan ($1.27 billion) through a three-tranche offshore yuan bond deal, issuing 5-, 10-, and 30-year bonds priced tighter than initial guidance. The move comes as the company moderates capital expenditure after heavy AI investments. Dive deeper
Management chatter
In this section, we pick out interesting comments made by the management of major companies and policymakers of the Indian and Global Economy.
Nirmala Sitharaman, Finance Minister, on GST 2.0 reforms
"GST 2.0 will put ₹2 lakh crore into the hands of the common man by reducing the tax burden and improving liquidity in the economy."
"From September 22, there will be only two slabs, 5% for common consumer goods and 18% for others, replacing the earlier five-slab system."
"Taxes on essentials like soaps, toothpaste, medicines, two-wheelers, cars, TVs, and cement have been cut sharply, directly benefiting the middle class and the poor." - Link
Steel Secretary Sandeep Poundrik on National Mission for Sustainable Steel
"The government is working on a ₹5,000 crore scheme to promote clean steel-making technologies and reduce carbon emissions."
"About 75–80% of the fund will be earmarked for secondary steel players, with incentives linked to how much emissions are reduced year-on-year."
"This scheme will push decarbonisation in one of India’s hardest-to-abate sectors, which currently contributes 12% of the country’s greenhouse gas emissions." - Link
Commerce Ministry on India - U.S. trade talks
"Discussions between India and the U.S. were positive and forward-looking, with both sides agreeing to intensify efforts for an early conclusion of a trade agreement."
"The Indian team, led by Rajesh Agrawal, met Brendan Lynch and the U.S. delegation for nearly seven hours in New Delhi."
"While the sixth official round of talks was called off after U.S. tariff hikes, both sides agreed to continue negotiations virtually to move the process forward." - Link
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Calendars
In the coming days, we have the following significant events and corporate actions:
That’s it from us for today. We’d love to hear your feedback in the comments, and feel free to share this with your friends to spread the word!