India: Daily Stock Market Performance Insight - September 12, 2025

Today, the Indian stock market continued its upward trend for the eighth straight session! The Sensex closed at 81,904.70, up 0.44%, while the Nifty finished at 25,114, gaining 0.43%. This follows gains yesterday of 0.15% for the Sensex and 0.13% for the Nifty.

A key driver of today’s positive sentiment is softening US labor market data. This has increased expectations that the Federal Reserve might cut interest rates, which generally boosts stock markets globally. Renewed optimism around Indo-US trade talks is also contributing to the rally.

However, there are some underlying concerns. The Rupee depreciated by 7 paise to 88.42 against the US dollar, partly due to ongoing tariff issues between India and the US and strong dollar demand. Foreign Institutional Investors (FIIs) also sold off equities worth Rs 3,472.37 crore today, indicating some caution among foreign investors.

Certain sectors are shining particularly bright. The Defence sector jumped nearly 3% thanks to recent order wins and dividend announcements – Bharat Dynamics rose ~3% and Cochin Shipyard announced a dividend of Rs 2.25 per share. The IT sector also had a good day, rising 4.3% overall, boosted by Infosys’s massive Rs 18,000 crore buyback offer – a 19% premium over its recent share price.

Looking ahead, regulatory changes could also impact the market. SEBI is considering easing IPO norms for large companies, potentially making it easier for them to raise capital. This caused BSE shares to jump 2.35% today. Bajaj Broking Research recommends Reliance Industries and Persistent Systems as good picks in a market expected to remain range-bound but with an upward bias.

Even with some companies reporting weaker earnings – like Adani Power, whose revenue fell 5.7% and net profit 15.5% year-over-year – their share prices can still rise, as seen with Adani Power’s 10% gain over the last month, driven by future growth expectations.