Optimism around a possible US Federal Reserve rate cut, progress in India-US trade negotiations, and strong buying in defence counters lifted market sentiment on Friday.
The Sensex closed at 81,904.70, rising 355.97 points or 0.44%. The 30-share benchmark opened with a firm gap-up at 81,758.95, compared to the previous close of 81,548.73, and extended gains to hit an intraday high of 81,992.85. The Nifty settled at 25,114.00, up 108.50 points or 0.43%.
The rally pushed Indian equities to a three-week high, driven by renewed optimism over a Fed rate cut and reports that the EU may reject US tariff proposals on India for purchasing Russian oil, analysts noted. Market confidence was further buoyed by progress in bilateral trade discussions, while defence stocks surged after authorities began talks to procure six next-generation conventional submarines.
Among Sensex constituents, BEL, Bajaj Finance, Bajaj FinServ, Axis Bank, Maruti, Tata Motors, ICICI Bank, L&amp;T, Infosys, and PowerGrid emerged as top gainers. On the other hand, Eternal, Hindustan Unilever, Trent, Asian Paints, Bharti Airtel, and ITC ended in the red.
Sectoral indices largely closed positive. Nifty Financial Services jumped 184 points (0.70%), Nifty Bank advanced 139 points (0.26%), Nifty Auto gained 122 points (0.46%), and Nifty IT added 107 points (0.30%), while Nifty FMCG declined.
Broader markets mirrored the trend. The Nifty Smallcap 100 climbed 114 points (0.64%), the Nifty Midcap 100 added 183 points (0.32%), and the Nifty 100 rose 106 points (0.41%).
The rupee also strengthened, ending 0.18% higher at 88.27, supported by mixed FII inflows. &ldquo;The dollar index remained weak below 98, providing additional strength to the rupee, while ongoing trade deal talks with the US also added optimism. Weakness in crude prices offered further minor support,&rdquo; said Jateen Trivedi of LKP Securities.
He added, &ldquo;Overall, the rupee looks set to gain some lost ground with scope to test 87.75 in the coming days, while 88.50 is seen as a reversal resistance zone.&rdquo;

Markets end at 3-week high on Fed cut hopes, trade progress, defence sector gains

Sensex, Nifty Rally for 8th Day in a Row

Markets end at 3-week high on Fed cut hopes, trade progress, defence sector gains

September 12, 2025 | 16:46 IST