The stock market is currently navigating a complex landscape, influenced by factors such as the upcoming US Federal Reserve (Fed) meeting, ongoing India-US trade negotiations, and technical setups for key indices like the Nifty 50.
US Fed Meeting in Focus
The US Federal Reserve's September meeting, which commenced on September 16, 2025, is under intense scrutiny. The market widely anticipates a rate cut, with most traders pricing in a 0.25% reduction, bringing the federal funds rate to a target range of 4.00% to 4.25%. However, there remains a small possibility of a more aggressive 0.50% cut. The Fed's decision is complicated by a softening labor market, as indicated by slowing job growth, and inflation levels that are slightly above the Fed's 2% target.
The Fed's dual mandate of balancing inflation control with supporting employment makes this a particularly challenging decision. The meeting will also include the release of the Fed's economic projections and policy outlook for the remainder of the year. Market participants will be closely watching Fed Chairman Jerome Powell's press conference for signals about the future path of monetary policy.
India-US Trade Deal Negotiations
India and the United States have resumed bilateral trade negotiations, marking the first in-person meeting since the US imposed 50% tariffs on some Indian goods. A team led by Brendan Lynch, the Assistant US Trade Representative for South and Central Asia, met with Indian officials to discuss the India-US Bilateral Trade Agreement. Both sides have described the discussions as "positive and forward-looking," and have agreed to intensify efforts to reach a mutually beneficial trade agreement. The negotiations aim to address difficulties stemming from elevated tariff structures that have created uncertainty for exporters.
Nifty 50 Trade Setup
The benchmark Nifty-50 index managed to hold the 25,000 level, closing at 25,069.20 on Tuesday. According to experts, a decisive breakout above 25,150 could trigger short covering and potentially lead to a rally toward the 25,300 zone. Immediate support for the Bank Nifty is placed at 54,350. As long as the Nifty is trading above 25,100, bullish sentiment is expected to continue, potentially driving the index up to 25,400, with further upside to 25,500.
Stocks to Watch
Market experts have suggested several stocks for potential buying or selling on Wednesday, September 17, 2025. These include:
Other Market Influences
