Auto, energy stocks lift Indian shares; trade, Fed hopes aid sentiment

Sep 16, 2025, 11:47 GMT+7
(Reuters) - Indian shares edged higher on Tuesday, lifted by gains in energy and auto stocks and optimism over progress in U.S. trade negotiations with China and India ahead of the Federal Reserve's rate decision.
The Nifty 50added 0.39% to 25,166.85 and the BSE Sensexrose 0.4% to 82,118.50 as of 10:12 a.m. IST.
Of the 16 major sectors, 15 advanced. The auto indexgained 1%, led by Mahindra & Mahindra's1.5% rise. The sub-index is set to snap a five-session losing streak.
Nomura analysts Kapil Singh and Siddharth Bera flagged early signs of demand recovery in the sector following cuts to the Goods and Services Tax (GST).
They named Mahindra & Mahindra, Hyundai Motor India,TVS Motorsand Ashok Leylandas their top picks.
Energy stocksrose 0.8%, gaining for a fifth straight session. HSBC noted that government support for oil marketing companies and steady fuel demand could drive earnings.
The broader small-capsand mid-capsadded about 0.6% and 0.3%, respectively.
The MSCI Asia ex-Japan index rose 0.7% as investors positioned for an expected U.S. rate cut on Wednesday that could weaken the dollar and spur foreign flows into emerging markets like India.
Trade optimism added support ahead of talks between India and the U.S. scheduled for Tuesday, weeks after Washington imposed punitive tariffs on New Delhi's purchase of Russian oil.
"If we get a trade agreement that removes the punitive tariffs, it could be a real shot in the arm for Indian markets," said VK Vijayakumar, chief investment strategist at Geojit Investments.
On Monday, U.S. and Chinese officials said they reached a framework to shift TikTok to U.S. control, in a sign of progress in U.S.-China trade negotiations.
In stock-specific moves, NTPC Green Energyjaumped 3.5% after its joint venture commissioned a 100 MW project.

Sumber : Reuters