siliconindia | | SEPTEMBER, 20258ARE FED'S RATE CUTS INDIA'S TICKET TO OUTSHINE GLOBAL MARKETS?EDITORIAL EXCLUSIVEBy M R Yuvatha, Senior Correspondent, SiliconindiaOn September 17, 2025, as the U.S. Federal Reserve announced a 25-basis point rate cut, slicing its benchmark to 4-4.25%, Mumbai's trading floors buzzed like a festival bazaar. The next morning, September 18 today, the BSE Sensex propelled 447 points to 83,141, Nifty50 turned 118 points higher to 25,448, and the India VIX, the market's pulse of panic, hit a historic low of 9.49, screaming calm in a stormy world.With hints of two more Fed cuts in 2025, India's markets caught a spark. But is this the rocket fuel to blast past Wall Street and Shanghai, or just a dazzling Diwali sparkler destined to fade? Let's dive into this high octane ride, weaving in yesterday's market pulse, India's unique swagger, and the roadblocks that could stall the joyride all in plain, effective semantic that cuts through the noise.The US Fed's decision to cut rates to 4%-4.25% is broadly positive for Indian stock markets as it improves global liquidity and may attract foreign inflows into Indian markets. Softer US yields following the Fed's rate cut could attract higher FII inflows into Indian stock markets, supporting both the rupee and equities. Improved global liquidity and lower borrowing costs are likely to boost risk appetite, aiding emerging market inflows. If the RBI adopts a more accommodative stance, domestic borrowing costs may ease further, benefiting corporates and driving credit growth, said Pranay Aggarwal, Director and CEO of Stoxkart.· Fed rate cut sparks global liquidity, boosting India's FII appeal· India's rally driven by strong GDP, low inflation, and robust domestic inflows· Corporate earnings and trade talks hold the key to sustaining momentum
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