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Informist, Thursday, Sept. 18, 2025                                      Tel +91 (22) 6985-4000

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Equity Alert: Mkt seen flat to tad up; IT cos in focus post US Fed rate cut

 

MUMBAI--0756 IST--Benchmark indices are likely to stay flat to slightly higher Thursday with the short-term outlook being positive. A 25-basis-point rate cut by the US Federal Reserve overnight is unlikely to majorly impact the Indian market but a guidance of further cuts in 2025 will keep sentiment higher, analysts said. Information technology stocks will be in focus, with lower interest rates in the US being beneficial for earnings of such companies.

 

The Nifty 50 is likely to test the 25500 levels in the near term but the rise is likely to be gradual rather than a sharp one, options data showed. A weaker dollar, some progress in trade talks between the US and India, and hope of a trade deal between India and the European Union are some other factors likely to keep the near term outlook positive for the domestic market. 

 

"From a technical perspective, the double bottom breakout (for the Nifty 50) around 25150 remains the key anchor for the ongoing uptrend...we expect the momentum to continue, with Nifty likely to test 25500 and 25670 in the near term," said Rajesh Bhosale, equity technical analyst at Angel One, in a note.

 

The September contract of the GIFT Nifty also indicated a flat to slightly higher start for the market. At 0748 IST, the contract was at 25506 points, 31 points higher than its previous close. On Wednesday, the Nifty 50 closed at 25330.25 points, up 91.15 points or 0.4%. The BSE Sensex ended at 82693.71 points, up 313.02 points or 0.4%.

 

Overnight, indices in the US ended mixed after a choppy session, with a 25-basis-point rate cut by the US Fed and guidance of a further 50 bps cut in 2025 failed to lift the market. Indices in Asia were mixed in early trade Thursday. South Korea's Kospi gained slightly after having snapped an 11-session winning run in the previous session.  (Akash Mandal)

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Equity Alert: US indices end mixed; US FOMC guides for 50 bps of cuts in 2025

 

 

MUMBAI--0730 IST--The Nasdaq Composite and the S&P 500 closed slightly lower Wednesday after the US Federal Reserve met expectations of a 25-basis-point cut in the federal funds rate target range, the first cut after it reduced the policy rate by 100 basis points between September and December last year. Meanwhile, the Dow Jones Industrial Average closed higher. The Fed projected two more quarter-percentage-point cuts in the remaining part of 2025.

 

The US Federal Open Market Committee trimmed the fed funds range to 4.00-4.25% Wednesday, as expected, after holding it for five consecutive meetings. All the members barring Stephen I. Miran voted for a 25-bps cut. Miran voted to reduce the interest rate by 50 basis points.

 

US Fed Chair Powell termed the move a "risk management cut." The central bank indicated it would steadily cut rates for the rest of the year as there are concerns on weakness in the labour market.  

 

"The one rate cut per meeting pace shows they no longer feel tariff-based inflation is a serious threat and that the economic growth slowdown with companies onboarding fewer new employees is increasingly the bigger risk," Christopher S. Rupkey, chief economist at FWD BONDS, was quoted as saying by CNBC. "Stagflation is out and labour market concerns are moved to the front-burner," he added. 

 

This came against the backdrop of immense political pressure on the central bank, which has generally been allowed to operate with independence from direct political control. US President Donald Trump has criticised chair Powell for months for the central bank's reluctance to cut policy rates.

 

"He (Powell) noted the softness in the labour market, but reserves a larger cut for more serious conditions that are not present today," Michael Rosen, chief investment officer at Angeles Investments, was quoted as saying by Reuters. 

 

The S&P 500 index ended at 6600.35, down 6.41 points or 0.1%, falling for the second straight session. The Nasdaq Composite closed at 22261.32, down 72.63 points or 0.3%. Both the indices have closed at record highs in a couple of sessions recently. The Dow Jones Industrial Average closed 0.6% higher at 46018.32 points.

 

Following are the closing levels of US indices Wednesday:

 

INDEX	LAST LEVEL	CHANGE IN %
Dow Jones Industrial Average	46018.32	0.57
NASDAQ Composite	22261.33	(-)0.33
S&P 500	6600.35	(-)0.1

 

(Gopika Balasubramanium)

 

US$1 = INR 87.81

 

End

 

Edited by Akul Nishant Akhoury

 

All prices from National Stock Exchange, unless otherwise specified.

All percentage changes for share prices are rounded off to the nearest whole number; percentage changes for index values are rounded off to one decimal place.

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