Indian Stock Market Starts Day on Positive Note Amid Fed Rate Cut Buzz
Mumbai’s stock market kicked off Friday with a gentle upward swing, fueled by upbeat global signals and rising hopes for a US Federal Reserve interest rate cut next week. Investors seem optimistic as they eye potential boosts from easier monetary policy abroad.
At around 9:25 am, the Sensex climbed 114 points, or 0.14%, to reach 81,663. The Nifty also edged higher by 39 points, or 0.16%, settling at 25,045. These benchmark indices reflect a steady start to the trading session in the Indian stock market.
Midcap and smallcap stocks stole the show today, outperforming the big players. The Nifty Midcap 100 rose 0.43%, while the Nifty Smallcap 100 gained 0.36%. This broader market strength highlights growing confidence beyond just the top names.
On the Nifty, standout gainers included Adani Enterprises, Infosys, TCS, NTPC, and Axis Bank, pushing the index forward. However, Bajaj Finserv, Titan Company, and Tata Consumer Products dragged it down as key losers.
Sector-wise, the Nifty Auto index led the pack with a sharp 1.01% jump, making it the top performer. Nifty IT followed closely at 0.74% up, and Nifty Metal added 0.59%. On the flip side, Nifty FMCG slipped 0.62%, emerging as the day’s biggest sectoral loser.
Boosting the mood further, reports say US President Donald Trump has invited India’s Union Commerce Minister Piyush Goyal for talks with the US Trade Representative. This could pave the way for a new trade deal and ease India-US tensions, adding to the positive vibes for Indian markets.
The Nifty’s momentum carried over from Thursday, where it broke past the 25,000 mark for the seventh straight day, closing at its highest since August 21. It even cleared a key downward trend line on the daily chart, signaling strength.
Experts point out that the Nifty’s short-term trend stays bullish, holding firm above its 5-day, 20-day, and 50-day moving averages. They see immediate resistance at 25,153, based on recent highs. This analysis keeps traders watching closely for more Sensex and Nifty updates.
Overnight, US markets hit new peaks despite some mixed data. Jobless claims hit a four-year high of 263,000, which oddly reinforced bets on Fed rate cuts—even as August inflation ticked up to 2.9%. The Dow Jones soared 1.36%, Nasdaq gained 0.72%, and S&P 500 rose 0.85%.
Traders now see a whopping 94.8% chance of a 0.25% Fed rate cut next week, with just 5.2% odds for a bolder 0.50% slash. This global Fed rate cut expectation is clearly spilling over to boost Asian and Indian stock market trends.
Most Asian markets joined the rally in the morning. China’s Shanghai index rose 0.24%, Shenzhen added 0.15%, Japan’s Nikkei surged 0.91%, Hong Kong’s Hang Seng leaped 1.42%, and South Korea’s Kospi climbed 1.15%. This positive Asian market performance sets a strong tone for the day.
On the investment front, foreign institutional investors (FIIs) sold equities worth Rs 3,472 crore on Thursday, but domestic institutional investors (DIIs) countered that by buying Rs 4,046 crore worth of shares. This tug-of-war shows domestic players stepping up to support the Indian stock market rally.
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