16 Sep 2025 : Indian stock markets opened on a positive note on Tuesday, rebounding strongly in early trade after facing volatility in recent sessions. Investor sentiment improved, tracking global cues and expectations of easing inflationary pressures.
Sensex and Nifty Gain in Opening Session
At the opening bell, the BSE Sensex surged over 400 points, while the NSE Nifty climbed nearly 120 points, led by gains in banking, IT, and auto stocks. Market experts said the rebound came after renewed buying by foreign institutional investors (FIIs) and positive trends across global equity markets.
Sector-Wise Performance
- Banking & Financials: Top private banks and NBFCs were among the biggest gainers, driven by healthy credit growth outlook and strong loan demand.
- IT Stocks: Major IT companies rose, reflecting optimism about improved global tech spending and fresh deal wins.
- Auto Sector: Shares of auto majors advanced, supported by festive demand expectations and GST-led price cuts on small cars and two-wheelers.
- FMCG: Consumer goods companies also saw moderate gains amid steady rural demand.
Global Cues Support Rally
The rebound in domestic equities mirrors global markets, where Asian and European stocks traded higher on optimism that the U.S. Federal Reserve may cut interest rates sooner than expected. Lower U.S. bond yields also boosted risk appetite among investors, spilling over into emerging markets like India.
FII and DII Activity
According to provisional data, foreign investors were net buyers in the previous session, while domestic institutional investors (DIIs) also continued their supportive buying streak. Analysts say this twin inflow has created a positive undertone for the markets.
Expert Views
Market analysts believe the rebound signals renewed investor confidence, though volatility may persist in the short term.
“Markets are consolidating after a volatile phase. The positive global cues and improved liquidity outlook are driving sentiment. However, investors should remain cautious of macroeconomic risks,” said a senior analyst at a leading brokerage.
Key Stocks in Focus
- HDFC Bank, ICICI Bank, and SBI led the financial rally.
- Infosys and TCS lifted IT indices.
- Maruti Suzuki, Bajaj Auto, and Tata Motors gained momentum in auto trades.
- Reliance Industries added to overall index support with moderate gains.
Outlook Ahead
Experts expect the market momentum to sustain if global trends remain favorable and oil prices stay under control. However, traders are advised to watch out for upcoming macroeconomic data releases, including India’s inflation figures and U.S. Fed policy signals, which may set the tone for near-term market direction.
For now, investors appear optimistic, and the markets are in recovery mode after last week’s choppiness.
Summary:
Indian stock markets rebounded in early trade, with Sensex and Nifty rising sharply on global cues, strong FII inflows, and sectoral gains across banking, IT, and auto stocks, restorin.