Fed cut lifts markets, sentiment improves

Indian equities rebounded smartly on Thursday after the US Federal Reserve trimmed its key policy rate by 25 basis points, triggering a decline in US 10-year Treasury yields and prompting renewed domestic institutional support.

- FPJ News Service

Recovering from early losses, the 30-share BSE Sensex jumped 426.86 points to close at 84,818.13, after oscillating between 84,906.93 and 84,150.19. The NSE Nifty advanced 140.55 points to finish at 25,898.55, ending the session close to its intra-day high of 25,922.80 as most sectoral indices strengthened.

“Markets rebounded broadly following the Fed’s 25-bps rate cut amid persistently high US inflation. The drop in US 10-year yields indicates a moderation in the risk of FII outflows, which lifted sentiment. The auto sector outperformed on expectations of stronger demand, while IT gained on hopes of increased spending,” said Vinod Nair, Head of Research at Geojit Investments. He added that selling pressure in other Asian markets—driven by concerns over AI-driven valuations and rising Japanese yields—cast a shadow over regional sentiment.