The Indian stock markets opened with a positive trend on September 16, recovering from the significant sell-off experienced the previous day. The Sensex rose over 300 points, while the Nifty crossed the 23,200 mark ahead of the Federal Reserve’s policy meeting scheduled for September 15–16. Both benchmark indices began trading higher despite the backdrop of elevated US bond yields and high crude oil prices.

The Sensex commenced trading at 74,249.31, compared to the previous closing of 74,003.82, and was observed at approximately 74,388.37, showing an increase of 384.55 points or 0.52 per cent. Similarly, the Nifty debuted at 23,201.60, against its prior close of 23,118.60, and was trading around 23,244.30, up by 125.70 points or 0.54 per cent.

Sector Performance in the Early Session

During the early hours of trading, several stocks across various sectors displayed positive movement. Notable gainers included Nestle, ITC, State Bank of India, Mahindra & Mahindra, Reliance, Hindustan Unilever, Asian Paints, HCL Tech, Power Grid, Kotak Mahindra Bank, HDFC Life, Trent, BEL, and Hindalco, which were all trading in the green.

Conversely, certain stocks such as Wipro, NTPC, and ONGC recorded losses, trading in the red. On the Bombay Stock Exchange (BSE), major gainers included ITC, Mahindra & Mahindra, BEL, Trent, and Reliance, whilst HDFC Bank, IndiGo, and Tata Steel struggled to maintain positive momentum.

In the domain of payment companies, shares saw notable increases following the introduction of a new Merchant Discount Rate (MDR) framework. Paytm’s shares rose to Rs 1,767.05, reflecting an increase of 35.95 points or 2.08 per cent, while Mobikwik shares rose to Rs 203.90, up by 1.95 points or 0.97 per cent around 9:29 AM.

Commodity Market Overview

The commodity market reflected a steady state during the trading session as well. Brent crude was trading at approximately $108.06 per barrel, whilst crude oil was reported at around $104.69 per barrel. Additionally, the price of gold remained around $4,326.65, indicating stability amidst fluctuating market conditions.

Market analyst Vipin Dixena commented that while the opening recovery was encouraging, it should not be interpreted as a trend reversal. The breadth of the previous day’s selling and challenging external conditions continue to pose risks. He highlighted that if the Nifty manages to sustain above 23,200 and approaches the 23,300-23,400 range, it could indicate further potential for the current rebound.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted the ongoing weak market structure, attributing the low performance largely to high US bond yields and crude prices. He expressed scepticism about the potential for a robust rebound unless these factors change. Additionally, he mentioned that the Federal Reserve is likely to raise interest rates by 25 basis points, but market reactions might be muted since such an increase is already anticipated.

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