Sensex, Nifty Rebound Despite Fed Rate Hike And Crude Concerns: Is The Market Rally All About NSE IPO?
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Sensex and Nifty recovered from early lows on September 17 despite a 25-basis-point Fed rate hike and elevated crude prices. Banking stocks and softer oil supported the rebound, while the NSE IPO and six new listings added to market activity. The key question is whether the NSE issue is driving the rally.
Indian benchmark indices recovered from the day's lows on Thursday, September 17, after opening lower following the US Federal Reserve's 25-basis-point rate hike. The Nifty 50 rose to 23,363 after falling to 23,193, while the Sensex moved up to 74,677 from an intraday low of 74,163.
The Bank Nifty also recovered, rising to 56,570 after touching 56,072 earlier in the session.
The NSE IPO opened for subscription on Thursday, while six other companies made their stock-market debut. The primary-market activity added to the day's action, although the broader recovery in equities was also supported by buying in banking and financial stocks and a decline in crude oil prices.
Why Are Sensex And Nifty Rising Today?
The US Federal Reserve raised its policy rate by 25 basis points. The move was widely expected, limiting the immediate impact on Indian equities. Markets had already factored in the rate increase, while the Fed's outlook on further rate moves remained a key factor for investors.
Banking and financial stocks led the recovery in the domestic market. The buying came after recent weakness in equities, with investors picking up stocks that had fallen in previous sessions.
Crude oil prices also eased on Thursday after rising sharply over the past two weeks. For India, a fall in crude prices can reduce pressure on the import bill and inflation, providing some relief to the market.
NSE IPO Opens, Six Stocks List
The ₹22,569 crore NSE IPO opened for subscription on Thursday. The issue comprises an offer for sale of 12.64 crore shares, with the price band set at ₹1,700-₹1,785 per share. The issue closes on September 21.
NSE had raised ₹6,746 crore from more than 150 anchor investors before the public issue opened.
The IPO comes on a busy listing day, with six other companies debuting on the exchanges. Rentomojo, Karamtara Engineering, Steamhouse India and LCC Projects opened above their issue prices. Asset Reconstruction Company (India) opened around its issue price, while Manipal Payment & Identity Solutions began trading below its issue price.
The mixed performance of the new listings indicates that the buying has not been uniform across the primary market.
Is The NSE IPO Driving The Market Rally?
The NSE IPO has brought significant attention to the capital-market segment, but the movement in the benchmark indices has been broader.
Banking and financial stocks have been among the main contributors to the recovery, while softer crude prices have also helped sentiment. The Fed's rate hike, meanwhile, had been largely anticipated by markets.
The IPO has added to trading activity on a day when several new issues are also making their market debut. However, the recovery in the Sensex and Nifty has taken place alongside buying across several sectors rather than being limited to stocks linked to NSE.
IT stocks have remained under pressure, reflecting continued concerns over the impact of higher US rates on technology spending and valuations.
For the broader market, the focus therefore remains on the combination of domestic buying, crude prices and global rate signals, with the NSE IPO adding another major event to Thursday's trading session.
Also Read - NSE Indices Review 2026: 30 September Rejig Brings Major Changes Across Nifty Indices
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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