Mumbai (Maharashtra) [India], September 16 (ANI): Indian stock markets opened on a muted note on Tuesday as investors adopted a cautious stance, closely tracking the resumption of Indo-US trade negotiations and awaiting the US Federal Reserve's policy outcome later this week.

At the opening bell, the Nifty 50 index stood at 25,073.60, up 4.40 points or 0.02 per cent, while the BSE Sensex opened at 81,851.84 with gains of 66.10 points or 0.08 per cent.

Experts noted that the indices were in 'wait and watch' mode, with sentiment subdued ahead of crucial international and domestic developments.

Banking and market expert Ajay Bagga told ANI, 'Indian markets are watching as a US trade delegation arrived last night for a day-long negotiation which will set the tone for resumption of Indo-US trade negotiations. Not much reaction from Indian stock futures showed subdued expectations.'

Bagga added that the Federal Reserve's rate decision, due Wednesday night India time, was another key factor likely to sway markets.

'With the Fed rate cut looming, expect two volatile days for Indian markets. Usually, going into a big Fed pivot like this, markets turn queasy. Expect that in India today and tomorrow,' he said.

On the broader indices, Nifty 100 was up 0.06 per cent, Nifty Midcap 100 gained 0.16 per cent, while Nifty Smallcap 100 rose 0.28 per cent.

Sectoral performance on the NSE was mixed, with all indices trading in the green except Nifty Private Bank. Nifty Auto was up 0.33 per cent, Nifty FMCG gained 0.15 per cent, Nifty Media advanced 0.42 per cent, Nifty IT moved higher by 0.17 per cent, and Nifty Pharma rose 0.19 per cent at the time of reporting.

On the global front, optimism over US-China trade talks also underpinned sentiment. The White House described the fourth round of negotiations in Madrid as successful, while a call between US President Donald Trump and Chinese President Xi Jinping is scheduled for Friday, potentially paving the way for a TikTok deal announcement and easing of tariff tensions.

Ashika Institutional Equities observed that 'participants' sentiment remained cautious ahead of the US Federal Reserve's policy announcement later this week and the anticipated trade discussions between US President Donald Trump and Indian Prime Minister Narendra Modi.'

The firm also noted domestic macroeconomic developments, highlighting that India's wholesale prices rose 0.52 per cent year-on-year in August 2025, surpassing market expectations of 0.30 per cent, and rebounding from a 0.58 per cent decline in July.

The other Asian markets traded largely positive. Japan's Nikkei 225 index surged 0.52 per cent, South Korea's KOSPI rallied 1.22 per cent, Hong Kong's Hang Seng gained 0.17 per cent, Taiwan's Weighted Index advanced 0.92 per cent, while Singapore's Straits Times slipped marginally by 0.09 per cent. (ANI)