The US Federal Reserve’s decision to cut interest rates has injected a wave of enthusiasm into American markets, pushing major indices towards record highs. Yet, the excitement failed to carry through to global futures trading, with Oracle’s weaker-than-expected results pulling sentiment down. Asian markets, which began the day on a strong note, later slipped into losses or trimmed early gains. Despite this, Indian markets opened with renewed optimism.
Meanwhile, speculations continue over whether the trade discussions between India and the visiting US delegation will yield meaningful progress. Reports indicate that the US is exerting pressure on India to ease its stance on agricultural imports such as soyabeans, maize, wheat, cotton, and meat. India remains firm in its opposition to genetically modified varieties, a key sticking point in the negotiations.
As anticipated by the markets, the Federal Reserve lowered interest rates by 0.25%, while making it clear that further cuts will not come easily. The central bank also announced plans to repurchase short-term bonds to improve liquidity, a move that cheered investors. The Federal Funds rate now stands at 3.50–3.75%. The vote was split 9–3, with one member calling for a deeper cut and two opposing any reduction. Investors, however, remain buoyant, expecting that when Jerome Powell’s term ends in May and a Trump-appointed successor takes over, rates could fall more aggressively.
The rate cut pushed gold and silver sharply higher. Silver alone has risen 115% so far this year, underlining the strength of the precious-metals rally.
India, meanwhile, is attracting unprecedented global interest. Leading technology giants—Google, Amazon, Microsoft, and Meta—have together announced investments worth USD 67.5 billion (around ₹6.7 lakh crore). These investments, largely aimed at accelerating artificial intelligence infrastructure, are expected to generate significant employment and reinforce India’s role as a global technology hub.
In Gift City’s offshore derivatives market, the Nifty closed at 25,966.50 on Wednesday night. It briefly touched 25,986 on Thursday morning before softening. The trend suggests Indian markets will start the day on a firm footing.
European indices showed little cohesion as investors awaited the Fed’s policy decision. The European Stoxx 600 and the UK’s FTSE edged marginally higher, while the German and French indices dipped. Switzerland’s monetary policy announcement is due today, while the European Central Bank and Bank of England will take policy decisions next week. Shares of Delivery Hero jumped 13.7% after the German food-delivery firm announced it would reassess its operating and capital-allocation strategy across various markets.
The US markets rallied strongly after the Fed cut rates. The Dow Jones surged nearly 500 points, and although the S&P 500 closed just below fresh record levels, sentiment remained buoyant. The Russell 2000 index of smaller companies ended at a record high. Investors are also enthused by the Fed’s plan to buy back short-term securities, which will boost liquidity. Many analysts predict a “Santa Claus rally”, with expectations that the S&P 500 could soon cross the 7,000 mark.
On Wednesday, the Dow gained 497.46 points (1.05%) to close at 48,057.75. The S&P 500 rose 46.17 points (0.67%) to 6,886.68, while the Nasdaq Composite climbed 77.67 points (0.33%) to end at 23,654.16.
However, US futures traded mixed on Thursday morning. The Dow inched up 0.03%, while the S&P 500 and Nasdaq slipped 0.26% and 0.50% respectively, weighed down by Oracle’s earnings.
Oracle’s revenue fell short of expectations, although net income surpassed forecasts at USD 2.26 per share. The company’s order book soared 438% to USD 523 billion. Yet, rising costs and doubts over profitability in artificial intelligence investments unnerved investors, dragging the stock down 11% in after-hours trade. Nvidia, CoreWeave, and other AI-linked stocks also weakened.
Asian markets opened higher but soon slipped. Japan’s Nikkei swung from gains to a 0.10% decline. Australia’s ASX traded 0.60% higher, while South Korea’s Kospi gave up part of its early half-percent rise. Chinese indices fell, even as Hong Kong’s market gained 0.70%.
India’s markets attempted a morning rebound but soon slipped into losses for the third consecutive day, with foreign institutional selling pressuring indices. IT, banking, financial services, mid-caps, and small-caps all weakened. Consumer durables, realty, defence, tourism, and capital-market stocks also lost ground.
The Nifty touched 25,947 and the Sensex hit 85,020 before reversing. Foreign investors sold shares worth ₹1,651.06 crore in cash trades, while domestic funds made net purchases of ₹3,752.31 crore.
The Sensex closed 275.01 points lower (0.32%) at 84,391.27, and the Nifty fell 81.65 points (0.32%) to 25,758. The Bank Nifty dropped 261.95 points (0.44%) to 58,960.40. The Midcap 100 index fell 1.12% and the Smallcap 100 index slipped 0.90%.
Market breadth turned negative with more declines than advances on both the BSE and NSE. The Nifty continues to hold support at 25,700; a breakdown may push it to 25,500. Resistance is expected at 25,900 and 26,000.
IndiGo parent InterGlobe Aviation informed exchanges that revenue for the third quarter would be severely affected due to continued flight disruptions. The stock has dropped 17% in one month.
Oracle’s weak results could weigh on its Indian subsidiary as well. Kotak Securities expects the Nifty to touch 29,120 next year—a 12% rise—with a possible rally towards 32,032 in a strong bull phase.
TCS has acquired US-based Coastal Cloud for USD 700 million, strengthening its expertise in Salesforce consulting and AI-driven solutions.
Tata Steel announced multiple strategic moves, acquiring a 50.01% stake in Triveni Pellets for ₹636 crore and approving a capacity expansion of its Neelachal Ispat unit to 4.8 million tonnes. A new hot-rolled plant will also be set up at its Tarapur unit.
Mazagon Dock Shipbuilders and the Indian Navy have partnered with Brazil’s navy for maintenance of Scorpene-class submarines.
Cipla has introduced Eli Lilly’s tirzepatide drug (EurPeake) for weight reduction and diabetes management in India.
The Reserve Bank has approved a new not-for-profit digital payments intelligence corporation jointly owned by SBI and Bank of Baroda, each holding 30%.
Adani Enterprises completed its ₹25,000 crore rights issue with 108% subscription. Starworth Infrastructure, a subsidiary of Puravankara, secured a ₹510 crore construction order in Bengaluru.
Gold rose after the Fed’s decision, closing at USD 4,229.50 per ounce and touching USD 4,248 in early trade. Holiday pricing has moved up to USD 4,278. In Kerala, 22-carat gold climbed ₹640 per sovereign to ₹95,560. Prices are expected to rise further today.
Silver jumped to USD 61.97 before closing at USD 61.87, and later climbed to USD 62.74 in early Thursday trade. Holidays have pushed the rate to USD 63.14.
Industrial metals moved unevenly. Copper gained 0.70% to USD 11,645 per tonne, aluminium rose 0.46%, and tin also strengthened. Nickel, lead, and zinc declined. Rubber edged up to 171.30 cents per kg. Cocoa surged 3.67% to USD 6,042.78 per tonne, coffee rose slightly, tea dipped marginally, and palm oil fell 1.05%.
The dollar index slipped 0.50% to 98.79 after the rate cut and moved further down to 98.56 this morning. The euro strengthened to USD 1.1702, and the pound climbed to USD 1.3383. The yen appreciated to 155.63 per dollar. The yuan remained steady at 7.06 per dollar, while the Swiss franc weakened to 0.7988 per dollar. US bond yields fell, with the 10-year Treasury trading at 4.137%.
The Indian rupee weakened, closing at 89.97 per dollar after intraday volatility. The RBI continued its intervention to stabilise the market. The Chinese yuan rose to ₹12.72.
Crude prices rose after the US Navy seized a Venezuelan oil tanker, escalating tensions in the region. Brent climbed 1.12% to USD 62.63 per barrel, while WTI traded at USD 58.31. UAE’s Murban crude reached USD 64.01. Natural gas rose to USD 4.60.
Cryptocurrencies fell after moving in mixed directions earlier. Bitcoin dropped 2% to below USD 91,000, while Ether slipped 2% to USD 3,260. Solana fell below USD 134 as the broader digital-asset market weakened.
