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Below the Quote on Daily Market Commentary for September 18th 2025 By Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Nifty gained 93 points (+0.4%) to close at 25,423 on Thursday, as benchmarks advanced for the third straight session following the U.S. Federal Reserve’s 25bps rate cut to 4–4.25% and its signal of two more reductions this year. The broader indices also ended higher, with the Nifty Midcap100 and Smallcap100 up 0.4% and 0.3%, respectively. Sectorally, most indices closed in the green. Pharma was the top gainer (+1.5%) followed by IT (+0.8%), with stocks rebounding post the Fed rate cut. In autos, the GST rate cut has meaningfully lowered acquisition costs across PVs, SUVs, premium 2Ws, and tractors. Alongside rural recovery aided by normal monsoons, higher kharif sowing, lower interest rates, and solid demand, the outlook for the sector remains positive. Financials are on the cusp of an earnings recovery, with banks expected to lead as margins stabilize and credit growth revives. Reasonable valuations, easing stress in retail loans, and structural drivers like rising SIP flows and insurance penetration underpin a positive growth outlook. Defence stocks remain in focus, supported by strong policy momentum and project visibility. The Defence Ministry’s new 15-year roadmap (TPCR-2025), outlining 457 programs—almost double the previous plan—has reinforced optimism on the sector’s long-term growth. We expect the gradual upmove to continue, with markets tracking tariff-related developments guiding near-term sentiment.

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