Indices Surge on Fed Rate Cut, but Profit Booking Tempers the Upside

22 Sep 2025 , 03:03 PM

FPIs were net sellers in equities worth INR 1,269 cr last week. The VIX declined further to 9.97 and entered a sub-10 territory for the first time in 5 years. The weekend saw significant newsflow related to a draconian H1B visa fee by the US government. Subsequent clarifications indicate that the impact will likely be less than initial worries. More significantly, GST and Income Tax reliefs announced yesterday are a boost to domestic consumption.

 

BSE SENSEX 30 INDEX – Another Strong Week

Weekly Performance: 0.88%

date	open	high	low	close
19 Sep, 2025	82946.0	82978.6	82485.9	82626.2
18 Sep, 2025	83108.9	83141.2	82704.9	83014.0
17 Sep, 2025	82506.4	82742.0	82490.5	82693.7
16 Sep, 2025	81852.1	82443.5	81779.9	82380.7
15 Sep, 2025	81925.5	81998.5	81744.7	81785.7
12 Sep, 2025	81759.0	81992.9	81641.4	81904.7

Source: BSE

The BSE Sensex 30 index extended the rally last week. The index came under pressure early in the week on sector specific profit booking and continued FII selling. However, the index rebounded on strong domestic flows, positive global cues including US Federal Reserve’s 25bps rate cut. Lacklustre performers like realty and capital goods also supported the uptrend. The rally was tempered by profit booking on Friday.

 

NIFTY 50 INDEX – Rate Cut Sparks A Third‑Week Surge

Weekly Performance: 0.85%

date	open	high	low	close
19 Sep, 2025	25410.2	25428.8	25286.3	25327.1
18 Sep, 2025	25441.1	25448.9	25329.8	25423.6
17 Sep, 2025	25276.6	25346.5	25275.3	25330.2
16 Sep, 2025	25073.6	25261.4	25070.4	25239.1
15 Sep, 2025	25118.9	25138.4	25048.8	25069.2
12 Sep, 2025	25074.4	25139.4	25038.1	25114.0

Source: NSE

The Nifty 50 index ticked higher during the last week and was up by about 0.8%. This marks the third week of gains, largely on account of encouraging global cues like the US Fed Rate cut (25 basis points). While FII flows were weak, domestic flows helped mitigate the headwind. On aggregate, optimism over India-US trade talks, Fed rate cut and improving sentiment on domestic consumption due to tax cuts supported the rally.

 

NIFTY MIDCAP 100 INDEX – Midcaps outperform

Weekly Performance: 1.49%

date	open	high	low	close
19 Sep, 2025	59124.1	59247.2	59051.2	59094.3
18 Sep, 2025	59051.3	59117.4	58725.4	59073.2
17 Sep, 2025	58987.1	59066.4	58695.6	58848.6
16 Sep, 2025	58582.6	58838.2	58427.9	58799.6
15 Sep, 2025	58339.3	58547.7	58259.3	58486.1
12 Sep, 2025	58251.8	58327.7	58138.4	58227.2

Source: NSE

The NIFTY MIDCAP 100 Index witnessed a strong rally of 1.5% last week. This also means it also outperformed the broader NIFTY 50 index again. Like the large caps, the gains were supported by strong domestic flows and positive global cues. Also, a multi year low in India VIX continues to help the midcaps. The index hit a high of 59247.2 and a low of 58138.4 during the week. It closed at 59094.4 on 19 Sep, recording a weekly gain of 867.2 pts.

 

NIFTY SMALLCAP 100 INDEX – Strong Surge

Weekly Performance: 2.86%

date	open	high	low	close
19 Sep, 2025	18493.5	18538.6	18428.8	18504.5
18 Sep, 2025	18495.2	18534.0	18415.5	18477.0
17 Sep, 2025	18367.5	18450.0	18339.7	18423.2
16 Sep, 2025	18178.2	18313.8	18122.7	18298.3
15 Sep, 2025	18034.2	18161.8	18029.5	18127.0
12 Sep, 2025	17941.6	17996.2	17877.8	17989.9

Source: NSE

NIFTY SMALLCAP 100 INDEX gained ~3% last week indicating that last week’s rally was highly broad-based. This is a significant outperformance vs both the large and the mid-caps. Like the mid-caps, a multi year low VIX continues to be supportive. The index hit a high of 18538.6 and a low of 17877.8 during the week. It closed at 18504.6 on 19 Sep, recording a weekly gain of 514.6 pts.

NIFTY BANK INDEX – Bank Shares Rebound

Weekly Performance: 1.19%

date	open	high	low	close
19 Sep, 2025	55647.9	55688.8	55355.3	55458.9
18 Sep, 2025	55797.1	55835.2	55490.9	55727.4
17 Sep, 2025	55158.4	55540.8	55146.6	55493.3
16 Sep, 2025	54778.4	55185.4	54777.8	55147.6
15 Sep, 2025	54884.1	55018.7	54807.5	54887.9
12 Sep, 2025	54781.6	54852.2	54580.4	54809.3

Source: NSE

NIFTY Bank witnessed renewed buying interest as it outperformed NIFTY 50. Bank NIFTY was an underperformer in recent times as it was likely impacted by sector rotation. Last week marked a reversal of that trend. The index hit a high of 55835.2 and a low of 54580.4 during the week. It closed at 55458.9 on 19 Sep, recording a weekly gain of 649.6 pts.

 

NIFTY IT INDEX – Outperforms. But, new H1B fees sour the sentiment

Weekly Performance: 1.29%

date	open	high	low	close
19 Sep, 2025	36765.5	36821.2	36369.9	36578.2
18 Sep, 2025	36801.5	37064.9	36631.1	36750.2
17 Sep, 2025	36326.3	36608.9	36253.9	36447.1
16 Sep, 2025	35962.3	36274.0	35860.5	36212.1
15 Sep, 2025	36139.7	36151.4	35686.1	35902.2
12 Sep, 2025	36331.4	36356.6	36025.3	36110.8

Source: NSE

The NIFTY IT Index performed well last week. It was up 1.29%. However, the newly announced H1B fee of USD100,000 is a significant event and sours the sentiment. The index hit a high of 37064.9 and a low of 35686.1 during the week. It closed at 36578.2 on 19 Sep, recording a weekly gain of 467.5 pts.

NIFTY OIL  GAS INDEX – Registers A Strong Gain

Weekly Performance: 2.18%

date	open	high	low	close
19 Sep, 2025	11299.0	11369.9	11298.0	11333.3
18 Sep, 2025	11327.5	11335.2	11242.7	11286.5
17 Sep, 2025	11252.1	11320.2	11242.3	11290.5
16 Sep, 2025	11161.8	11229.2	11132.6	11219.8
15 Sep, 2025	11091.2	11134.4	11079.4	11124.4
12 Sep, 2025	11116.0	11148.7	11074.8	11091.1

Source: NSE

Last week, the NIFTY Oil Gas Index performed strongly. Supply disruption concerns caused by Ukrainian attacks of Russian energy infrastructure, including stoppages at important Russian refineries and export terminals were a significant event. The index hit a high of 11369.9 and a low of 11074.8 during the week. It closed at 11333.3 on 19 Sep, recording a weekly gain of 242.1 pts.

 

NIFTY FMCG INDEX – FMCG Falters

Weekly Performance: -0.5%

date	open	high	low	close
19 Sep, 2025	56594.6	56640.7	56191.8	56273.1
18 Sep, 2025	56448.9	56643.4	56293.1	56522.4
17 Sep, 2025	56562.7	56678.4	56213.8	56321.0
16 Sep, 2025	56634.3	56700.8	56292.6	56398.6
15 Sep, 2025	56516.2	56673.2	56430.4	56551.4
12 Sep, 2025	56991.8	57065.5	56430.5	56557.1

Source: NSE

The Nifty FMCG Index has underperformed during the last week in a broader market surge across sectors. Positive global cues from US Fed rate cut and positive expectations from India-US trade talks flattered sentiment, but profit booking in FMCG stocks on sector weakness played spoilsport. The index hit a high of 57065.5 and a low of 56191.8 during the week. It closed at 56273.1 on 19 Sep, recording a weekly loss of -284.1 pts.