Positive Global Cues Likely to Boost Indian Equities
The Indian stock market is poised for a positive opening on September 18, 2025, as global cues turn supportive following the US Federal Reserve’s decision to cut interest rates. Benchmark indices Nifty 50 and Sensex are expected to trade higher, riding on strong global market sentiment and early signals from the Gift Nifty, which indicates a bullish start.
According to market experts, this rally could extend further as easing US monetary policy often boosts foreign investment flows into emerging markets like India.
Gift Nifty Indicates Strong Opening for Indian Markets
Pre-opening trends on the Gift Nifty suggest that Indian equities could open with gains.
- The Gift Nifty was seen trading around the 25,512 mark, showing a premium of nearly 88 points compared to the previous close of Nifty futures.
- This reflects robust investor optimism and a positive risk appetite in global markets after the US Fed decision.
Such a positive start could help Nifty 50 cross the 25,400 level, while the Sensex could move closer to 83,000, according to market watchers.
US Federal Reserve Cuts Interest Rates by 25 Basis Points
Dovish Monetary Policy Boosts Global Sentiment
The key trigger for the upbeat market sentiment is the US Federal Reserve’s announcement of a 25 basis points rate cut, lowering the benchmark interest rate range to 4%–4.25%.
- Fed Chair Jerome Powell signaled the possibility of two more rate cuts later this year, indicating a shift toward a more accommodative policy stance.
- Lower US interest rates tend to reduce global borrowing costs, support liquidity, and drive risk-on sentiment in equity markets worldwide.
This move by the US central bank has boosted hopes of continued foreign inflows into Indian stocks.
Sensex and Nifty 50 End Higher on Wednesday
Market Gains Ahead of Fed Decision
Before the US Fed announcement, Indian markets closed higher on Wednesday, reflecting optimism among investors.
- The BSE Sensex surged 313.02 points (0.38%) to close at 82,693.71.
- The NSE Nifty 50 advanced 91.15 points (0.36%) to settle at 25,330.25.
- Broader market indices also saw positive momentum, with midcap and smallcap shares outperforming the benchmarks.
This upward trend sets a strong foundation for Thursday’s expected gap-up opening.
Sensex Technical Outlook: Support and Resistance Levels
Analysts Expect Continuation of Uptrend
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the Sensex has formed a double bottom breakout, which is a bullish technical signal indicating further upside potential.
- Key support levels are seen at 82,500 and 82,200.
- As long as Sensex trades above these levels, the uptrend is likely to continue.
- On the upside, the index may face resistance near 83,000–83,200.
- A breach below 82,200 could prompt traders to book profits or exit long positions.
Similarly, Om Ghawalkar, Market Analyst at Share.Market (PhonePe Wealth), sees support between 81,800–82,000 and resistance at 83,000–83,200.
Nifty 50 Outlook: Bulls Eye 25,500 and Beyond
Technical indicators also point to strength in the Nifty 50, which could extend gains if it sustains above 25,300.
- Immediate support is placed at 25,200 and 25,050, while resistance is seen at 25,500–25,650.
- A strong move above 25,500 could open the doors for a rally towards 25,800, according to analysts.
- However, a fall below 25,050 could trigger mild profit-booking in the near term.
Market experts suggest using dips as buying opportunities in fundamentally strong stocks while keeping stop-loss levels intact.
Sectoral Outlook: Banks, IT, and FMCG in Focus
Banking and Financial Stocks Likely to Lead Gains
Analysts expect banking, IT, and FMCG stocks to be in focus as global risk appetite improves post the Fed’s rate cut.
- Banking stocks are expected to benefit from lower bond yields and expectations of steady credit growth.
- IT stocks may attract investors as a weaker US dollar improves the earnings outlook for export-driven companies.
- FMCG and consumer-focused companies could see demand revival on expectations of lower interest rates spurring consumption.
Broader market participation is also likely to improve, with midcap and smallcap stocks continuing their recent rally.
Key Factors to Watch in Today’s Trade
Investors should keep an eye on the following key triggers that could influence market direction today:
- US bond yields and dollar index movement after the Fed decision.
- FII (Foreign Institutional Investor) and DII (Domestic Institutional Investor) activity in Indian equities.
- Crude oil prices and their impact on inflation expectations.
- Rupee movement against the US dollar.
- Global market performance, especially in Asian and European indices.
Expert Advice for Traders and Investors
Adopt a Cautious Yet Positive Approach
Market experts recommend a cautiously optimistic approach to trading on September 18:
- Use trailing stop-losses to protect profits in ongoing long positions.
- Avoid chasing momentum blindly; look for buying opportunities near support zones.
- Focus on quality large-cap stocks in banking, IT, and capital goods sectors.
- Remain vigilant about global macroeconomic data and policy commentary from central banks.
Bottom Line
The Indian stock market is expected to open on a strong positive note on September 18, buoyed by supportive global cues following the US Fed’s 25 bps rate cut. With Gift Nifty signaling an upbeat start and Sensex and Nifty 50 maintaining bullish technical patterns, traders may see further upside momentum.
However, investors should remain alert to global developments and protect profits with strict stop-loss strategies. As long as Sensex stays above 82,200 and Nifty 50 above 25,200, the overall market trend remains positive.
