US Fed's 25 bps cut to 3.50-3.75% sparked muted Indian market reaction, with Nifty 50 turning negative (-0.06%) amid hawkish 2026 signals. FII caution offsets liquidity boost; rupee steady at 89.98, gold surges, while IT/financials face profit booking post-event.
Indian equities opened flat-to-positive on Fed cut hopes but slipped post-announcement, as Chair Powell's "no rush" 2026 outlook tempered inflows. Nifty erased pre-open gains, hovering near 25,780 with Bank Nifty down sharper (-0.12%). FIIs stayed sidelined despite lower US yields aiding EM risk appetite.
Rupee held firm at 89.98/USD, gold jumped ₹800/10g on dollar weakness. Sectors like IT (TCS +0.3%) gained mildly, but HDFC/ICICI dragged amid RBI liquidity tightness (₹7.25T balances).
Key Highlights:
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Market Move: Nifty -0.06% (~25,780); Sensex -0.04%.
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Fed Details: 25 bps cut; cautious on further easing amid inflation.
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Winners: IT (+0.3%), gold (₹1,43,000/10g); rupee stable.
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Losers: Banks (-0.12%), midcaps cautious on FII flows.
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Outlook: Rangebound; support 25,700; FII reversal key trigger.
Sources: Moneycontrol, Economic Times, Cashparency.