GIFT Nifty indicates positive opening for equities; US Fed hints at two more rate cuts in 2025

GIFT Nifty:

GIFT Nifty September 2025 futures were trading with a gain of 40.50 points (or 0.16%) in early trade, suggesting that a positive start for the Nifty 50 today.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 1,124.54 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,293.53 crore in the Indian equity market on 17 September 2025, provisional data showed.

According to public data, FPIs have sold shares worth Rs 11,329.08 crore in the cash market in so far in September 2025. This follows their cash sales of shares worth Rs 46,902.92 crore in August 2025.

Global Markets:

Asia market traded mixed on Thursday after the Federal Reserve lowered its benchmark rate as expected yesterday.

Federal Reserve Chairman Jerome Powell described the decision as a "risk management cut" rather than something more directed at shoring up a weak economy.

The Fed also indicated two more rate cuts could be made by the years end, another in 2026, one more in 2027, and no cuts in 2028.

The Bank of Japan (BoJ) is kick-starting its two-day policy meeting, where it is expected by most economists to keep policy rates steady.

According to reports, the Bank of Japan is likely to leave policy rates unchanged at its upcoming meeting. However, a 25-basis point hike is possible in October, which would take the policy rate to 0.75%.

Meanwhile, China's central bank left a key interest rate unchanged on Thursday, as authorities appear in no rush to ease monetary settings. Resilient exports and a sharp stock market rally have allowed policymakers to withhold fresh stimulus even with a broader economic slowdown, media reports stated.

Overnight in the U.S., markets ended mixed after a choppy session. Although the rate cut had been widely expected, investors appeared uncertain about its broader implications.

The Dow Jones Industrial Average briefly touched a record high before paring gains but still managed to finish 260.42 points higher, or 0.6%, at 46,018.32. In contrast, the S&P 500 slipped 0.1% to close at 6,600.35, while the Nasdaq Composite fell 0.3% to 22,261.33.

Domestic Market:

The domestic equity benchmarks extended gains for a second straight session on Wednesday, lifted by optimism around India-U.S. trade talks and hopes of a U.S. Federal Reserve rate cut later in the day.

The Nifty closed above the 25,300 mark, aided by strength in PSU banks, IT and energy stocks. Broader markets also remained firm, with the BSE Midcap index advancing for the eighth session in a row.

The S&P BSE Sensex rallied 313.02 points or 0.38% to 82,693.71. The Nifty 50 index added 91.15 points or 0.36% to 25,330.25. Over the last two trading sessions, the Sensex has gained 1.11% and the Nifty has added 1.04%.

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