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Fed Rate Cut Sparks Market Rise, IT Sector Leads the Charge

Markets

Business Honor
18 September, 2025

Sensex and Nifty gained after the Fed rate cut, driven by IT stocks and optimism around earnings and worldwide trade talks.

Strong worldwide signals and advances in IT stocks supported Indian markets rising high today. Following the U.S. Federal Reserve's 25 basis point interest rate reduction and two additional rate cuts that were predicted later this year, that raised investor trust worldwide. In the initial hours of trading, the NSE Nifty rose 118.7 points to 25,448.95, while the BSE Sensex rose 447.5 points to 83,141.21. Although predicted, the Fed's first interest rate cut of 2025 is meant to support the struggling worldwide economy.

With Infosys, HCL Tech, and Tech Mahindra among the best outcomes, IT businesses led the rise. Improved U.S. spending and the falling value of the dollar are expected to support these businesses. Tata Motors, Sun Pharma, and HDFC Bank were among the other beneficiaries. However, due to profit-booking and sector-specific issues, Bajaj Finance, Tata Steel, UltraTech Cement, and Kotak Mahindra Bank were among the most serious losses. According to Rajesh Palviya, SVP-Research at Axis Securities, “growing markets like India are encouraged by the Fed's flexible attitude while improving the chance of foreign investment inflow.”

International markets also responded positively. China, Japan, and South Korea had developments in their markets, but Hong Kong's Hang Seng saw a slight decline. After the Fed's announcement, U.S. markets ended the night in a mixed state. The price of Brent crude dropped 0.16% to $67.86 per barrel, which would decrease India's concerns about rising costs. On the previous day, foreign investors sold Indian shares for ₹1,124.54 crore, yet domestic confidence remained high. Investors are still confident about rising earnings for businesses and the current state of trade discussions between the US and India. Markets will keep track of worldwide developments, banking signals, and economic information. Indian markets could hit record highs during the next weekend if availability improves and profits improve as expected.