Indian benchmark indices delivered a strong recovery on Wednesday, SENSEX gaining 267 points (0.45%) to close at 74,336.45 and NIFTY50 rising 99 points (0.43%) to end at 23,211.60. According to Moneycontrol, the market snapped a three-day losing streak with broad-based buying across sectors, barring IT and pharma. The positive momentum was driven by gains in fast-moving consumer goods (FMCG), media, and banking stocks alongside value buying activities. The market opened higher but came under pressure in initial hours before sustained buying in FMCG, realty and financial stocks helped maintain positive territory for the rest of the session. All indices ended in green except IT (down 1.5%) and pharma, with FMCG and PSU Bank gaining more than 1% each. The market breadth remained relatively subdued with 2,246 stocks declining against 1,620 advances, while Nifty Bank was among the key supports, gaining 498 points to 56,292, and Nifty Midcap index ended flat while Nifty Smallcap 100 declined 0.2%. Broader markets underperformed the benchmark indices, with the Nifty Midcap 100 index ending flat and Nifty Smallcap 100 closing marginally lower.
SBI Life Insurance, HDFC Life, ITC, Axis Bank and SBI emerged as the top gainers in the NIFTY50 index, as reported by Moneycontrol. On the downside, TCS, Wipro, Infosys, Tech Mahindra and Bajaj Finserv were among the major losers during the session. The mixed performance reflected selective buying in specific sectors while technology stocks faced selling pressure. Four of the top five Nifty losers were from the IT space, including TCS, Wipro, Infosys and Tech Mahindra, while ITC, SBI and Axis Bank were among the biggest contributors to the Nifty's gains. Insurance stocks saw strong buying at lower levels, with HDFC Life and SBI Life gaining around 3% each after a CNBC-TV18 report that the IRDAI's upcoming consultation paper on insurance commissions and distribution is likely to be directional. Patanjali Foods gained 7% on strong volumes, emerging as the top gainer on the Nifty 500 index, while PB Fintech rose 5% amid reports that the Insurance Regulatory and Development Authority of India's commission paper may be only directional. Paytm gained 4% while Pine Labs slipped 4% as investors booked profits after the initial reaction to the return of MDR.
The Federal Reserve's 25 basis points rate hike on September 16 marked the first increase since 2023, with most officials projecting at least one more move this year. According to Business Standard, the dot plot's hawkish tilt sent the US 10-year yield surging toward 4.96%, squeezing the yield differential that attracts foreign capital into Indian equities and pushing the rupee to ₹95.79 against the dollar. Global markets provided positive cues with Asian markets largely positive, with the Nikkei rising 0.36%, the Kospi gaining 1.37% and the Hang Seng remaining flat, as reported by Moneycontrol. Brent crude traded above $108 a barrel, while the rupee stood at 95.91 against the dollar. The MSCI Asia Pacific Index rose 0.6% and MSCI Emerging Markets Index rose 0.5% as markets braced for the Fed's decision. Elevated crude prices, higher bond yields, a weaker rupee and continued FII selling remain key concerns for investors, with Brent crude remaining above USD 108/bbl, near a four-month high, while the US 10-year Treasury yield touched 5.04%, its highest level since July 2007.
Payment and banking companies including Paytm, PB Fintech and CAMS are in focus following the National Payments Corporation of India's (NPCI) announcement. According to Moneycontrol, NPCI introduced a 0.4% fee on UPI payments of more than ₹2,000 to merchants, effective October 15. However, the new charge applies only to person-to-merchant (P2M) transactions above ₹2,000, while everyday person-to-person (P2P) transactions and small payments remain free. The finance ministry clarified that customers will not be charged for UPI payments, with unlimited free usage continuing for individuals. Under the new guidelines, a standard 0.4% MDR capped at ₹300 applies strictly to commercial P2M payments above ₹2,000, while essential utilities and fuel draw a flat ₹5 fee and capital market transfers are levied at 0.02%. Paytm rose 4% while Pine Labs slipped 4% as investors booked profits after the initial reaction to the return of MDR.
The focus during this data-lean week will remain on the President Trump and President Xi Summit that would be held in Washington next week, with announcements pertaining to agricultural goods, energy, sanctions and rare earths being closely watched. According to Business Standard, India's inflation data confirmed the energy shock is now firmly embedded in price indices, with retail inflation rising to 4.82% in August - its highest since December 2024 - while wholesale inflation climbed to 9.92%, with broad-based pressure across chemicals, textiles, and basic metals. Infrastructure Output for August would be announced on Monday (21 September 2026), with the infrastructure output in India rising by 5.4% from the previous year in July. On Wednesday (23 September 2026), flash readings for HSBC Manufacturing PMI, Services PMI and Composite PMI for September 2026 would be made public, along with Foreign Exchange Reserves position for the period ended September 18. On Friday (25 September 2026), the Current Account figures for the second quarter would be released, with the US current account deficit widening to a seasonally adjusted $226.8 billion in the first quarter of 2026.
