Indian Markets Open Higher As US Fed Eases Rates By 25 bps

Indian benchmark indices opened in the green on Thursday, supported by positive global cues following a 25-basis-point rate cut by the US Federal Reserve.

By 9.24 AM, the Sensex had gained 347 points, or 0.42 per cent, to 83,041, while the Nifty rose 89 points, or 0.35 per cent, to 25,419.

The Federal Reserve resumed its rate-cut cycle, lowering interest rates by 25 basis points to a target range of 4.0–4.25 per cent.

Fed officials projected two further cuts this year, anticipating rates to fall to 3.50–3.75 per cent by the end of 2025, citing evolving risk factors in the economy.

Markets largely expected the move due to weak labour market figures and persistent inflation.

Among broader indices, the Nifty Midcap 100 edged up 0.08 per cent, while the Nifty Small Cap 100 gained 0.68 per cent.

Top Gainers and Laggards

Top gainers on the Nifty included Tech Mahindra (up 1.10 per cent), ICICI Bank, TCS, Bajaj Finserv and Trent. Meanwhile, Hindalco, Bajaj Finance, Apollo Hospitals, SBI and SBI Life Insurance were among the laggards.

Sectorally, Nifty IT led the rally with a 1.5 per cent jump, followed by Nifty Realty (up 0.66 per cent) and Nifty Pharma (up 0.37 per cent). All sectoral indices were trading higher except for metals.

The Nifty 50 had maintained its position above the 25,300 mark in the previous session, reflecting investor confidence and psychological support at elevated levels.

Analysts suggested the index now shows potential for further gains, with resistance expected in the 25,400–25,500 zone and support around 25,000–24,900 levels.

“Since the labour market is cooling and the GDP growth projection for 2025 is only 1.6 per cent, perhaps two more cuts are possible this year,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.

He further added that ongoing market momentum is supported by expectations of an earnings revival and positive developments in India–US trade negotiations.

Global Market Trends

Globally, Asia-Pacific markets were mostly in the green following comments from US President Donald Trump that US–China trade talks are progressing well.

Overnight, major US indices saw modest changes, with the Nasdaq down 0.33 per cent, the S&P 500 losing 0.10 per cent, and the Dow rising 0.57 per cent.

Asian equities were stronger during Thursday’s morning session, with:

• China’s Shanghai index up 0.41 per cent,
• Shenzhen, climbing 1.09 per cent,
• Japan’s Nikkei, advancing 1.09 per cent,
• South Korea’s Kospi, gaining 1 per cent, and
• Hong Kong’s Hang Seng is marginally down 0.08 per cent

On Wednesday, foreign institutional investors (FIIs) sold equities worth Rs 1,124 crore, while domestic institutional investors (DIIs) purchased shares worth Rs 2,293 crore.

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