After Fed’s Surprise Rate Cut, Is This the Dawn of a New Bull Run for India’s Markets?

India’s key equity indices, Nifty 50 and Sensex, are expected to open higher on October 30, spurred by the US Fed’s rate cut decision and optimism around the forthcoming US-China summit. The 25 bps cut, the second this year, aims to spur economic growth amid elevated global uncertainties. Early GIFT Nifty futures trading above 26,150 points signals bullish momentum. The markets had gained about 0.5% in the previous session and hover just below the record highs set in September 2024.

Analysts remain cautiously optimistic as the Fed Chair Jerome Powell indicated that this might be the last rate cut of the year, cautioning markets against assuming further cuts. Nevertheless, the softer US interest rate and expectations of progress in the Trump-Xi meeting are viewed as supportive. Domestic blue-chip stocks in sectors like telecom, energy, and infrastructure are expected to lead gains. Investors will also watch for Q2 corporate earnings and expiry-related volatility.

Key Highlights:

• US Fed cuts rates by 25 bps to 3.75%-4%, boosting global liquidity.
   
• Nifty futures indicate opening above 26,150; Sensex poised for gains.
   
• Benchmarks trade within 1% of all-time highs from September 2024.
   
• Fed Chair Powell signals no guaranteed further cuts this year.
   
• Optimism around upcoming US-China trade talks supports sentiment.
   
• Domestic blue-chips like Bharti Airtel, RIL, and L&T expected to lead.
   
• Investors monitor Q2 earnings and F&O expiry impacts on volatility.
   

Source: India Today, Moneycontrol, Times of India, Reuters, NDTV Profit