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Below the Daily Market Commentary for September 11th 2025 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equity markets continued its positive momentum for the 7^th consecutive day on hopes of easing India–U.S. trade relations and expectations of a U.S. Fed rate cut next week. Nifty50 rose 87pts (0.1%) to close at 25,005, led by gains in PSU Bank and Oil & Gas stocks, which offset weakness in IT and Auto. Broader markets ended largely flat, with the Nifty Midcap100 up 0.12% and the Smallcap100 marginally higher by 0.03%. Sectorally, performance was mixed; Nifty O&G gained 1.1% while PSU Banks added 0.74%. PSU Banks extended their gains for the second day on consolidation buzz, with reports suggesting that the government may revisit merger plans to create larger, globally competitive lenders at the upcoming PSB Manthan starting tomorrow. DIIs were buyers on Wednesday, infusing ~?5,000 crore, while FIIs recorded net selling of just ~?115 crore, after buying about ~?2,000 Cr in the previous session. India is progressing well on multiple trade negotiations. A free trade agreement (FTA) with Oman is likely to be finalized within weeks, while bilateral talks with the U.S. remain on track despite tariff tensions. India and the EU are also holding the 13th round of negotiations in New Delhi, targeting an FTA by year-end. Investors are watching key macro releases that may influence risk appetite: ECB rate decision, US CPI and initial jobless claims, with UK GDP due Friday. The Fed’s stance next week remains the principal external driver. Over the past six sessions, Nifty has rallied more than 290 points, or 1.3%. We expect this gradual uptick in market to continue supported by the government’s GST reforms, expectations of a US Fed rate cut, and improving sentiment around US–India trade talks.

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