Indian Markets End Flat After US Federal Reserve Rate Hike

The BSE Sensex and NSE Nifty indices ended largely flat on September 17, 2026, as investors processed a 25-basis-point interest rate hike by the United States Federal Reserve. The Fed's decision raised the policy rate to 3.75-4 per cent, marking the first increase in three years. While the Sensex initially advanced 86.49 points in early trade, it eventually dipped 21.86 points to settle at 74,314.59. The Nifty rose 53 points to close at 23,270.60.

Market growth was constrained by foreign institutional investor outflows, weakness in IT stocks and private-sector banks, and a U.S. 10-year Treasury yield near 5%. Although Brent crude prices eased slightly to approximately $104 per barrel, analysts noted that elevated oil costs continued to hinder a stronger recovery despite strong corporate earnings growth across mid-cap and small-cap segments.

Sectoral performance remained mixed, with gains in pharma, media, and auto offset by losses in PSU and private banks. Amidst the volatility, the National Stock Exchange of India launched a ₹22,569-crore initial public offering, which reached 39% subscription on its first day of bidding.