Last Updated on September 17, 2026 9:40 pm by INDIAN AWAAZ
By Our Business Correspondent
Domestic equity benchmarks ended mixed on Thursday as investors weighed the impact of the US Federal Reserve’s latest interest-rate decision, renewed risks to global trade and easing crude oil prices. Selective buying in realty and pharmaceutical stocks helped the Nifty 50 hold above the 23,250 level, although weakness in banking and oil and gas shares capped the broader market’s gains.
The Sensex declined 21.86 points, or 0.03%, to close at 74,314.59, while the Nifty 50 advanced 53 points, or 0.23%, to 23,270.60.
The relatively subdued market performance reflected continued caution after the US Federal Reserve raised its benchmark interest rate by 25 basis points to a target range of 3.75%-4%. The move was the first US rate increase since July 2023 and has renewed concerns over global liquidity, foreign portfolio flows and the cost of capital for emerging markets.
The Fed’s latest projections also kept the possibility of another rate increase in 2026 alive. That prospect is important for Indian markets because a higher-for-longer US interest-rate environment can support the dollar and place pressure on emerging-market currencies, including the rupee. It can also influence the allocation decisions of global investors between US assets and emerging markets.
The central bank’s projections showed differences among policymakers over the future course of monetary policy. Sixteen of the 19 officials supported at least one further rate increase during 2026, while the median projection put the policy rate at 4.1% at the end of the year. The median forecast also showed the rate at 4.1% in 2027.
The Fed simultaneously raised its inflation outlook. Headline personal consumption expenditure inflation was projected at 3.7% for 2026, while core PCE inflation was seen at 3.4%, both above the central bank’s 2% target. The Fed, however, raised its 2026 GDP growth forecast to 2.3%, while the median unemployment-rate projection stood at 4.1%.
For Indian equities, the combination of elevated US rates, a firm dollar and geopolitical uncertainty remains a key external risk. Sectors and companies dependent on foreign portfolio flows are particularly sensitive to shifts in global liquidity conditions.
Realty and pharma outperform
Despite the cautious global backdrop, domestic investors continued to find opportunities in selected sectors. Realty and pharmaceutical stocks attracted buying interest, helping the Nifty maintain its positive bias.
Bharat Electronics was among the major Nifty gainers, rising 2.51%. Tata Steel advanced 2.34%, while Eternal gained 1.69%.
The broader market remained largely steady. The BSE 150 MidCap Index gained 0.07%, while the BSE 250 SmallCap Index declined 0.13%.
Market breadth remained positive. On the BSE, 2,686 shares advanced, compared with 1,642 declines, while 217 stocks closed unchanged.
Volatility expectations also eased. The India VIX, which measures the market’s expectation of near-term volatility, fell 7.82% to 12.14.
The combination of positive breadth, lower volatility and selective buying suggests that investors continued to differentiate between individual companies and sectors despite the uncertain macroeconomic environment.
Crude provides some relief
Oil prices offered some support to market sentiment. Brent crude for November 2026 delivery declined $2.34, or 2.21%, to $103.49 a barrel.
The decline came amid signs that Saudi Arabia was working to restore crude flows after damage to its East-West pipeline. Reports of additional shipments being arranged through Oman helped ease immediate concerns about supply disruptions.
The pipeline, which provides an alternative route for transporting Saudi crude away from the Persian Gulf, had been shut following a drone attack launched from Iraq, raising concerns over further tightening in an already-sensitive oil market. Subsequent indications that operations could resume helped reduce the immediate supply-risk premium in crude prices.
For India, lower crude prices are particularly significant because oil imports have a direct bearing on the trade deficit, inflation, corporate margins and the rupee. Any sustained moderation in international oil prices could therefore provide some relief to the domestic macroeconomic environment.
However, geopolitical risks remain a major variable for the energy market.
Rupee remains under pressure
The rupee edged lower against the US dollar. The partially convertible rupee was hovering at 95.9300 against its previous close of 95.9100.
The currency continues to face pressure from a combination of dollar strength, global interest-rate differentials, foreign capital movements and elevated crude prices.
The US Dollar Index declined 0.15% to 100.16, while the US 10-year Treasury yield fell 0.38% to 4.985%.
In contrast, India’s 10-year benchmark government bond yield increased to 7.064%, compared with 7.055% in the previous session.
The contrasting movement in US and Indian bond yields remains an important factor for global investors assessing the relative attractiveness of Indian debt and equity markets.
Gold also remained under pressure. MCX Gold futures for the October 5, 2026 settlement declined 0.49% to Rs 1,51,724.
Fresh US tariff risk
A fresh trade-policy risk emerged after the US House of Representatives passed legislation that would give President Donald Trump authority to impose tariffs of up to 100% on countries purchasing Russian oil and gas.
The bill passed the House by 262-159 votes and targets Russian officials, financial institutions and vessels linked to Russia’s energy trade. It also extends existing Iran sanctions by five years. The legislation still represents a potential policy risk rather than an immediate 100% tariff on India.
India and China are among the major importers of Russian energy and therefore remain directly exposed to the potential implications of the measure. New Delhi has said that its energy decisions are guided by national interests and energy-security considerations.
For Indian markets, the concern extends beyond the direct trade impact. Any disruption to Russian oil supplies or additional tariffs could affect crude availability, refining margins, import costs and inflation expectations.
The issue therefore adds another layer of uncertainty for Indian companies already dealing with currency volatility and elevated global interest rates.
Global markets recover after Wall Street sell-off
Global markets showed mixed trends on Thursday as investors assessed the Fed’s decision and the movement in oil prices.
Dow Jones futures were up around 382 points, indicating a stronger opening for US equities after Wall Street suffered a sharp decline in the previous session.
The Dow Jones Industrial Average had fallen 631.21 points, or 1.21%, to 51,461.90 on Wednesday, while the S&P 500 declined 0.45%. The Nasdaq Composite was broadly flat.
European equities advanced, while Asian markets ended mixed as investors digested the Fed’s latest policy signal and developments in crude oil markets.
The market reaction underlined the difficulty for investors in balancing two competing forces: persistent inflation and relatively resilient economic activity on one side, and the potential drag from higher borrowing costs and geopolitical risks on the other.
NSE IPO attracts investor attention
The much-awaited initial public offering of the National Stock Exchange of India also remained a major focus of the domestic market.
The Rs 22,561.5-crore NSE IPO opened for subscription on Thursday. The price band has been fixed at Rs 1,700-Rs 1,785 per share, with the issue scheduled to close on September 21. The offer comprises an offer for sale by existing shareholders.
According to exchange data at 16:55 IST, the issue received bids for 3,67,69,784 shares against 8,86,42,911 shares on offer, translating into subscription of 0.41 times on the first day.
The NSE issue is one of the largest public offerings in India’s capital market and is being closely watched for its implications for the country’s exchange industry and primary-market activity.
New listings attract strong interest
Several newly listed stocks recorded significant movements on Thursday.
Rentomojo shares ended at Rs 532.95 on the BSE, a premium of 31.92% over the issue price of Rs 404. The stock debuted at Rs 480, a premium of 18.81%.
Steamhouse India ended at Rs 102.20, representing a 26.17% premium over its issue price of Rs 81. The stock listed at Rs 93, a 14.78% premium.
LCC Projects closed at Rs 172.75, up 18.32% over its issue price of Rs 146. It had listed at Rs 191.90, a premium of 31.44%.
Karamtara Engineering ended at Rs 351.95, a 38.56% premium over its issue price of Rs 254, after listing at Rs 320.
Asset Reconstruction Company (India), however, ended at Rs 137.05, a 1.40% discount to its issue price of Rs 139, despite touching an intraday high of Rs 141.60.
Manipal Payment and Identity Solutions closed at Rs 345.75, a 1.99% premium over its issue price of Rs 339.
Stocks in focus
RIR Power Electronics surged 10.70% after announcing completion of installation of silicon carbide epitaxial wafer manufacturing reactors at its semiconductor facility in Bhubaneswar, Odisha.
Emami gained 2.33% to Rs 377.90 after its board approved a share buyback through the open market at a maximum price of Rs 475 per equity share. The proposed buyback involves up to 59,36,842 shares, representing 1.36% of the company’s paid-up equity share capital as of March 31, 2026, with an aggregate amount of up to Rs 282 crore.
Tata Motors advanced 2.88% after announcing a price increase of up to 1% across its commercial-vehicle range, effective October 1, 2026.
Precision Wires India rose 2.57% after announcing the commencement of trial production of copper cathodes at its copper refining and recycling plant at Zaroli in Gujarat.
Neogen Chemicals gained 3.37% after completing its qualified institutional placement and raising approximately Rs 599.99 crore. The company allotted 26,60,753 equity shares at an issue price of Rs 2,255 each.
Semiconductor stocks gain from industry momentum
Semiconductor and electronics manufacturing stocks were in demand as SEMICON India 2026 began at Yashobhoomi in New Delhi.
Syrma SGS Technology emerged as the top gainer in the segment, rising 6.94%. MosChip Technologies gained 4.69%, while Kaynes Technology India advanced 3.99%. Dixon Technologies rose 0.83% and Avalon Technologies gained 0.81%.
Prime Minister Narendra Modi inaugurated SEMICON India 2026, which is being held from September 17 to 19 under the theme “Silicon to Systems: Building the Ecosystem”. More than 600 companies and representatives from 52 countries are participating, according to the PMO.
The market response to semiconductor stocks reflects investor interest in India’s expanding electronics and semiconductor manufacturing ecosystem.
IPO activity remains strong
The primary market remained active, with several issues drawing substantial investor interest.
Jindal Supreme (India) was subscribed 31.42 times, receiving bids for 29,52,88,651 shares against 93,99,600 shares on offer. The issue closes on September 18 and has a price band of Rs 88-Rs 93.
Hero Motors was subscribed 3.36 times, with bids for 29,75,98,378 shares against 8,86,07,596 shares on offer. Its price band is Rs 79-Rs 84.
SS Retail was subscribed 5.76 times, receiving bids for 5,06,85,075 shares against 87,93,884 shares on offer. Its price band is Rs 403-Rs 424.
Sonaselection India, which opened on Thursday, was subscribed 0.47 times, receiving bids for 46,63,800 shares against 1,00,10,000 shares on offer. Its price band is Rs 94-Rs 99.
The NSE issue, meanwhile, recorded subscription of 0.41 times on its opening day, according to the exchange data cited above. The contrasting response across issues indicates that investors are becoming increasingly selective in the primary market.
Outlook
The near-term direction of Indian equities is likely to remain sensitive to global monetary policy, crude oil prices, currency movements and developments on the trade front.
The Fed’s latest rate increase has complicated the global liquidity environment, while the possibility of another hike in 2026 means investors cannot yet assume a sustained easing cycle. At the same time, easing crude prices provide some relief to oil-importing economies such as India.
Domestic factors, including corporate earnings, sector-specific developments, IPO activity and India’s semiconductor and manufacturing investment cycle, could continue to provide stock-specific opportunities.
For now, Thursday’s session reflected a market caught between global caution and selective domestic optimism: the benchmark indices remained largely stable, volatility declined and buying emerged in specific sectors, but the external risk environment continued to limit the scope for a broad-based rally.
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