Indian markets are expected to open on an upbeat note today, with the rally extending for the third consecutive session. The indices are aiming for the highs last seen in late June.
The US Federal Reserve’s decision to cut interest rates has lifted Asian markets this morning. While Wall Street ended mixed yesterday, futures turned positive overnight. The dollar edged slightly higher after the rate cut, while both gold and crude oil slipped.
Gift Nifty closed at 25,475 on Wednesday evening and climbed to 25,505 in early trade today, signalling a firm opening for Indian equities.
The US Federal Reserve reduced its key rate by 25 basis points, taking the target range to 4.00–4.25%. Chair Jerome Powell indicated two further cuts this year, in October and December, and one more in 2026. Markets had expected deeper cuts, even below 3%, but those hopes were dashed. This marks the Fed’s first cut of 2025.
The Federal Open Market Committee voted 11–1 in favour. The sole dissent came from Stephen Myron, a Trump appointee, who pushed for a steeper 50 basis points cut. Powell emphasised the Fed’s independence, resisting political pressure and maintaining neutrality at a critical juncture.
The move reflected concerns over slowing job growth and persistent inflation pressures.
European stocks ended mixed on Wednesday as traders awaited the Fed decision. Puma shares surged 17% after German media reported the sportswear brand may delist and return to private ownership, with CVC Partners expected to invest.
US markets closed in different directions after a volatile session. Powell’s indication that rates will not be cut aggressively dampened sentiment. The S&P 500 and Nasdaq retreated as investors booked profits in technology stocks.
The Dow Jones Industrial Average rose 260.42 points (0.57%) to 46,018.32. The S&P 500 slipped 6.41 points (0.10%) to 6,600.35, while the Nasdaq Composite fell 72.63 points (0.33%) to 22,261.33.
Futures turned higher overnight, with the Dow up 0.24%, the S&P up 0.34% and the Nasdaq 0.49% stronger.
Across Asia, markets were mixed. Japan’s Nikkei crossed 45,000 to hit a fresh record, South Korea gained, and Hong Kong and Chinese equities rose, while Australia slipped.
Progress in India-US trade talks supported Indian equities for the second straight day, pushing indices to a three-month high.
Public sector banks surged yesterday. Bank of Maharashtra, Punjab National Bank and SBI rallied more than 3%, while Canara Bank, Bank of Baroda, Central Bank and Union Bank advanced over 2%. Reports of possible PSU bank mergers for scale triggered the rally.
IT, auto, real estate and oil stocks also supported gains, though metals, FMCG, consumer durables, pharma and healthcare slipped.
The Nifty rose 91.15 points (0.36%) to close at 25,330.25. The Sensex gained 313.02 points (0.38%) to end at 82,693.71. Bank Nifty advanced 345.70 points (0.63%) to 55,493.30. Midcap 100 edged 49 points higher (0.08%) to 58,848.55, while Smallcap 100 added 124.85 points (0.68%) to close at 18,423.20.
The breadth remained positive with 2,341 gainers versus 1,828 losers on the BSE, and 1,763 advancing against 1,313 declining on the NSE.
Cochin Shipyard secured a ₹120 crore contract from ONGC for rig repairs.
The Crime Branch arrested Rajendra Lodha, former director of Lodha Developers, in connection with an alleged ₹85 crore fraud.
Biocon received US FDA approval for two of its drugs.
Indo Solar and Cohance Life Sciences will see significant share sales in bulk deals today.
Dixon Technologies will acquire a 51% stake in Kunshan Q-Tech Microelectronics to expand production capacity.
Gold prices initially tumbled after the Fed decision but recovered somewhat later. The cut, being smaller than expected, triggered profit-taking. A slightly stronger dollar also weighed on prices.
Spot gold hit a record $3,707.40 per ounce on Wednesday before slipping to close at $3,661.60, down $30.10. Early this morning, it traded around $3,656 after briefly rising to $3,671.
In Kerala, 22-carat gold dropped by ₹160 to ₹81,920 per sovereign.
Silver prices hovered at $41.66 per ounce.
Base metals saw heavy declines. Copper fell 1.75% to $9,895 a tonne. Aluminium dropped 0.89% to $2,690. Tin, nickel and zinc all slid over 1%, while lead slipped marginally.
Rubber edged up 0.29% to 174.70 cents per kg. Cocoa fell 0.28% to $7,350.57 a tonne. Coffee plunged 9.5%, tea gained 2.39% and palm oil edged up 0.07%.
The dollar index rebounded from 96.22 to close at 96.87 and climbed further to 97.05 this morning.
The euro slipped to $1.1821, the pound to $1.3627, and the yen to 146.84 per dollar. The US 10-year Treasury yield rose to 4.087%.
The rupee gained ground, closing at 87.82 against the dollar, up 23 paise.
China’s yuan firmed to 7.10 per dollar as the central bank guided it higher.
Crude oil prices fell as US demand concerns surfaced. Brent lost 0.70% to $67.95 on Wednesday and dipped further to $67.57 this morning. WTI traded at $63.65 and Murban crude at $70.82. Natural gas dropped half a per cent.
Cryptocurrencies rallied after the Fed decision, with Bitcoin touching $117,000, Ether $4,610 and Solana $246.
