Indian equity markets opened slightly higher on Thursday, September 17, as easing crude oil prices provided some relief to investors. However, gains remained limited amid caution following the US Federal Reserve’s latest interest-rate hike, expectations of further tightening and continued foreign fund outflows.
The 30-share BSE Sensex was up 86.49 points at 74,422.94 in early trading, while the NSE Nifty gained 50.10 points to reach 23,267.70. The market remained sensitive to global monetary-policy developments and trends in overseas markets.
US Fed Rate Hike Keeps Investors Cautious
The US Federal Reserve raised its policy rate by 25 basis points to a range of 3.75%–4%, marking its first rate increase in three years. The Fed also indicated the possibility of another hike this year, adding to uncertainty for global investors.
Higher US interest rates can support the dollar and influence capital flows toward US assets, potentially affecting emerging markets such as India. Market participants are therefore closely watching the rupee, foreign investment flows and global bond yields.
Foreign Fund Outflows Limit Market Gains
Foreign institutional investors remained cautious. Exchange data showed that FIIs sold Indian equities worth ₹2,032.61 crore on Wednesday.
The trend in Asian markets was also mixed, with Japan and South Korea trading higher while Shanghai and Hong Kong remained under pressure. US markets had ended lower in the previous session following the Federal Reserve’s decision.
Crude oil prices provided some support after easing from recent highs. Brent crude was trading around $105.7 per barrel in early trade, although elevated energy prices remain an important factor for inflation and the Indian rupee.
NSE IPO Becomes a Major Market Focus
The much-awaited National Stock Exchange IPO also drew significant attention on Thursday as subscription opened. The issue was reported at around ₹22,569 crore, making it one of the largest public offerings in India's market history.
The IPO is being closely watched by investors alongside broader developments in the capital markets. NSE had also raised ₹6,746 crore from anchor investors before the public issue opened.
What Markets Are Watching
Investors are likely to track crude oil prices, foreign fund flows, the rupee-dollar movement, US bond yields and signals from the Federal Reserve. These factors could influence sentiment alongside domestic corporate earnings and broader economic developments.
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Conclusion
Indian markets began Thursday’s session with modest gains, but the combination of tighter US monetary policy, foreign selling and elevated crude prices kept the overall tone cautious. The NSE IPO added another major point of interest as investors assessed both domestic opportunities and global financial risks.