Indian stock markets experienced a day of moderate gains and cautious trading on Tuesday, September 16, 2025. The Sensex edged higher by approximately 100 points, while the Nifty 50 tested the 25,100 level. Market activity was influenced by a mix of domestic and global factors, including ongoing India-US trade talks and anticipation surrounding the US Federal Reserve's policy meeting.

Market Overview

Early trading indications suggested a flat start for the Indian benchmark indices. The Gift Nifty was trading around 25,158, reflecting a slight discount compared to the previous close of Nifty futures. On Monday, the domestic market had closed with minor losses, with the Nifty 50 ending below 25,100 and the Sensex shedding 118.96 points.

Sensex and Nifty Performance

The Nifty 50 had previously formed a Tweezer Top candlestick pattern, hinting at a potential consolidation phase before any further upward movement. Market analysts suggest that immediate resistance for the Nifty 50 lies in the 25,200 to 25,250 range. A breakout above this level could pave the way for a move towards 25,500. Support is seen at 25,000 and 24,950, with a fall below these levels potentially triggering a correction towards 24,800. For the Sensex, immediate support is identified at 81,500 and 81,400, while resistance is expected at 82,000 and 82,200.

Global Cues

Global markets presented a mixed bag of signals. Asian equities saw gains, fueled by optimism regarding US-China trade discussions. Japan's Nikkei 225 and Topix both advanced, with the Topix reaching a new record high. South Korea's Kospi also climbed, while Hong Kong's Hang Seng Index futures indicated a strong opening. US stocks closed higher, with the S&P 500 and Nasdaq reaching new intraday record highs. Investors were closely watching the US Federal Open Market Committee (FOMC) meeting, with expectations of a 25-basis-point interest rate cut largely priced in.

Commodities and Currency

Oil prices rose as markets assessed Ukrainian drone strikes on Russian refineries and potential sanctions related to Russian oil purchases. Brent crude settled at $67.44 a barrel, while West Texas Intermediate reached $63.30. Gold prices hit a fresh record, supported by a weaker dollar and softer Treasury yields ahead of the Federal Reserve meeting. Spot gold climbed to $3,680.80 per ounce. The Indian rupee traded within a narrow range and closed higher by 6 paise at 88.20 against the US dollar, influenced by concerns over US trade tariffs and hopes for a Federal Reserve rate cut. The yield on the 10-year bond increased slightly to 6.50%.

Godfrey Phillips' Bonus Issue

Godfrey Phillips India Ltd. was in focus as its shares traded ex-bonus on September 16, 2025, following the company's 2:1 bonus issue. Shareholders on record as of the determined date will receive two additional equity shares for every share held. This action effectively triples the number of shares held by investors. The company had fixed Tuesday, September 16, 2025, as the record date to determine eligible shareholders entitled to receive the bonus shares. The bonus issue is aimed at making the company's shares more affordable and broadening its retail investor base. While the bonus issue does not alter the company's market capitalization, it increases the number of outstanding shares, potentially improving liquidity and investor participation.

Godfrey Phillips has a history of rewarding shareholders with dividends. In August 2025, a dividend of ₹60 per share was declared. The company is a prominent player in India's tobacco and FMCG sector and distributes the Marlboro brand in India.