MARKET SNAPSHOT — MONDAY, SEPTEMBER 21, 2026

NIFTY EXTENDS GAINS FOR 4TH DAY; SENSEX SURGES 564 POINTS ON BARGAIN BUYING

Indian equity benchmarks ended higher on Monday, September 21, with the Nifty 50 extending gains for a fourth straight session while the Sensex surged over 564 points amid renewed buying in heavyweight stocks. The Nifty 50 settled at 23,414.30, gaining 67.90 points or 0.29%, while the BSE Sensex ended 564.03 points, or 0.76%, higher at 74,858.99.

The recovery was supported by easing crude oil prices, FII inflow returning after a seven-session selling streak, and bargain buying following recent losses.

Key Driver: Nifty Pharma was the top sectoral gainer, rising 1.16%, followed by Nifty Realty which advanced 1.14%. Nifty Healthcare rose 1.10%, while Nifty FMCG and Nifty Consumer Durables gained 0.95% each.

Sector Rotation: Pharma, Realty, FMCG and Consumer Durables led the charge, while Nifty Metal declined 0.61% and Nifty IT ended marginally lower by 0.08%. PSU bank stocks also remained under pressure despite the broader market recovery.

FED HIKE FALLOUT CONTINUES; DOLLAR FIRM, GOLDMAN SEES ANOTHER HIKE IN OCTOBER

The aftermath of the US Federal Reserve's 25 basis points rate hike continued to shape global market sentiment. The Fed raised rates to a target range of 3.75%-4.00% last week, its first hike in over three years, with a hawkish dot plot signaling more to come.

Goldman Sachs analysts now expect a second 25 basis points hike in October, shifting from their previous forecast of September being the only hike. This keeps pressure on emerging market currencies and the rupee.

Market Impact: The dollar index remained firm near the 100 mark. US stocks struggled after the decision, with the Dow Jones dropping sharply. Fed commentary remains a key risk factor for Indian markets.

India Impact: Despite the Fed's hawkish stance, Indian markets held up well, supported by domestic institutional buying and value buying after the recent correction.

RUPEE HOLDS NEAR 95.75; VIX DECLINES TO 11.26 AS ANXIETY EASES

The rupee hovered around 95.75 per dollar, extending gains from the previous session as softer oil prices, expected portfolio inflows linked to the NSE IPO, and continued RBI intervention helped limit downside. The currency recovered from seven-week lows, supported by easing crude prices and foreign portfolio inflows.

India VIX, the volatility gauge for the Indian equity market, declined 1.07% to close at 11.26, signaling continued moderation in market anxiety.

FII/DII Flows: Foreign institutional investors broke their seven-session selling streak, buying equities worth ₹599 crore on September 18. Domestic institutional investors continued to support the market, purchasing equities worth more than ₹1,000 crore during the session.