VRIGHT Exchange – Daily Digest | Corporate & Economy Analysis for September 18, 2025

Market Overview & Sentiment

• The market opened strong, with Nifty 50 rising ~0.44% to 25,441, and Sensex up ~0.50% to 83,108, led by 1% gains in IT stocks after the U.S. Federal Reserve cut rates by 25 bps

• All 16 sectors advanced, mid- and small-cap indices gained modestly (~0.3–0.4%). Investors welcomed the Fed move, though Fed Chair Powell tempered expectations of aggressive easing, noting the cut is risk-management driven

• The rupee weakened slightly, expected in the 87.88–87.92 range amid mixed global FX flows

• Corporate bond mutual funds continue to see outflows (~₹18.7B in August) amid rising yields

• Investor Insight: Weakening U.S. Treasury yields improve emerging market flows; India positioned to benefit if institutional momentum continues.

Macro & Global Developments

• The Fed’s action marks the first rate cut of CY25, shifting focus to labor market fragility rather than inflation. Signaled two more cuts before year-end

• India’s trade talks with U.S. are described as “positive and forward-looking,” injecting further optimism into market flows

• S&P’s growth forecast for India remains robust at ~6.9% in FY26, supported by strong Q2 GDP trends and muted inflation.

Insight: Growth-inflation stability alongside trade improvement makes India structurally favorable for foreign allocation.

Regulatory & Policy Updates

• RBI’s discussion paper on inflation-targeting framework raised macro flexibility questions ahead of its 2026 review. Responses close on Sept 18

• SEBI reforms continue to bear fruit: eased IPO thresholds, more streamlined mega-listing norms for foreign investors

• Insight: Expect increased mega-IPOs and broader foreign flow participation via larger-cap easing of access norms.

Sector & Corporate Highlights

Information Technology

• Strong gains driven by U.S.-linked revenue visibility on Fed easing. Stocks like TCS, Infosys benefited from a weaker dollar tailwind.
Insight: U.S.-focused Indian IT firms may rebound as global tech capex timelines sustain.

Banking & Financials

• Yes Bank shares under focus. SMBC raised stake to 24.99%, SBI sold out its 13.18% holding, signaling strong institutional vote of confidence

Insight: Continued participation by foreign strategic investors could raise sentiment across PSU-heavy bank stocks.

Energy & Commodities

• U.S. Fed cut helped stabilize commodity-linked sector sentiment even as oil eased slightly early.

Insight: Oil & gas, power and related midcaps may outperform in the near term if rates stay lower.

Watchlist: Key Triggers

• FOMC commentary: Will trajectory support more rate cuts beyond current guidance?

• India-U.S. trade dialogue updates: May affect tech, agri, energy segments.

• RBI inputs: including inflation-path clarity and views on FIT review.

• Upcoming corporate Q2 earnings from IT majors, banks (including Yes Bank), infra names.

Investor Takeaways

1. Risk-on equity flow backdrop reinforced by Fed rate cut and discounted USD yields.

2. IT firms benefit from improved U.S. dollar dynamics and demand visibility.

3. Banks and PSU names may see renewed interest post SMBC-Yes Bank ownership shift.

4. Reforms tailwind in capital markets platform could accelerate high-value listings.

5. Commodity-sensitive sectors remain headline catch-up plays, while bond outflows continue.