Stock Market Today: Gift Nifty Rallies 98 Points After US Fed’s 0.25% Rate Cut; Banking & IT Stocks Gain Momentum
Indian markets opened on a strong note today, tracking global optimism after the US Federal Reserve announced a widely expected 25 basis point interest rate cut, reducing rates from 4.5% to 4.25%.
Gift Nifty was trading nearly 115 points higher from yesterday’s close, around 25,500 levels, while Asian markets also remained positive. Dow Jones futures were up by more than 125 points, adding to the bullish sentiment.
Nifty and Bank Nifty Performance
On Wednesday, the Nifty 50 closed 91 points higher at 25,252, successfully maintaining levels above 25,200 – a sign of underlying strength. Similarly, Bank Nifty surged 345 points, closing at 55,493. Analysts expect the banking index to continue outperforming, with potential upside towards 56,000 levels this week.
Historically, lower interest rates act as a strong catalyst for the banking sector, as banks are quick to reduce deposit rates but delay passing on benefits to borrowers, creating short-term gains. The move also supports high-debt companies and IT firms, as reduced borrowing costs free up funds for innovation and expansion.
F&O Highlights
- Tata Consumer Products jumped 4%
- KPIT Technologies rallied 4%, showing strong momentum
- PNB gained 3%
- MCX was among top performers in the evening session
On the downside:
- Vodafone Idea slipped 2%
- ICICI Lombard, Aditya Birla Capital, and Jindal Steel were also among the top losers.
Precious Metals & Currency
Gold saw minor corrections, while silver dropped sharply to below ₹1,27,000, reflecting reduced demand as investors shifted towards equities and growth-oriented assets.
The Indian Rupee strengthened against the US Dollar, Euro, Pound, and Yen after the Fed’s move. Lower US rates typically weaken the dollar and increase global liquidity, making emerging market currencies more attractive.
Institutional Activity
- FIIs sold shares worth ₹1,125 crore
- DIIs bought stocks worth ₹2,294 crore
This buying support from domestic investors helped markets absorb foreign selling pressure.
Key Corporate Developments
- Poonawalla Fincorp to raise ₹1,500 crore in funding.
- Federal Bank to sell ₹16.62 crore worth of shares in Yes Bank to SMBC (Sumitomo Mitsui Banking Corporation).
- Bandhan Bank also selling 15.39 crore Yes Bank shares, raising about ₹357 crore.
- Cochin Shipyard received a prestigious ₹200 crore order from ONGC for offshore rig repair.
- SBI Mutual Fund acquired 10.73 lakh shares of Pithampur Engineering from Motilal Oswal Mutual Fund.
- Titagarh Rail Systems delivered India’s first indigenously built Diving Support Craft to the Indian Navy under the Make in India initiative.
- Mirza International faced an income-tax search, which the company clarified as a routine inquiry with no operational impact.
- Vikram Solar promoters pledged shares worth ₹2,600 crore to raise working capital.
- Indosolar’s promoters to offload 14.66% stake via OFS at ₹500 per share, aligning with SEBI norms.
- Gujarat Fluorochemicals promoters sold 13 lakh shares worth ₹460 crore.
Market Outlook
Analysts caution that while the Fed’s rate cut has already been priced in, “buy on rumor, sell on news” could apply, making fresh call option buying risky. The volatility index (VIX) remained stable around 10, while the put-call ratio slightly eased to 1.21, indicating mild call writing.
Overall, the outlook for Nifty and Bank Nifty remains bullish, especially for banking and IT stocks. Investors are advised to stay selective and consult financial advisors before taking fresh positions.
