Indian Benchmark Indices Jumps on Hopes of US Fed Rate Cut

Market Update at 10:30 AM: Indian shares inched higher at the open on Wednesday, tracking gains across Asian markets amid rising expectations of a U.S. Federal Reserve rate cut later this month.

The Nifty 50 rose 0.14 per cent to 25,181.95, while the BSE Sensex added 0.2 per cent to 82,197.25, as of 9:15 a.m. IST. Fifteen of the 16 major sectors advanced at the open. Broader Mid-Cap and Small-Cap indices gained 0.3 per cent each.

On Tuesday, Fed Chair Jerome Powell noted that the U.S. labour market remained weak, while the economy appeared to be on a firmer footing. He added that the inflation outlook remains unchanged from September, when the central Bank cut rates by 25 basis points.

Lower U.S. interest rates typically make emerging markets like India attractive to foreign investors, as dollar and Treasury yields are reduced.

Pre-Market Update at 7:45 AM: Equity benchmark indices Sensex and Nifty 50 are expected to open higher on Wednesday, October 15, amid mixed global market cues. At 7:15 AM, the GIFT Nifty was trading at 25,288, up 82 points, indicating a positive start for domestic equities. The International Monetary Fund (IMF) raised India’s FY26 GDP growth forecast to 6.6 per cent from 6.4 per cent, while trimming its FY27 projection by 20 basis points to 6.2 per cent. Globally, IMF expects economic growth to slow from 3.3 per cent in 2024 to 3.2 per cent in 2025 and 3.1 per cent in 2026. Asian markets traded higher in early trades, while US markets ended mixed overnight amid renewed US-China trade tensions.

Tech Mahindra reported a 4.7 per cent quarter-on-quarter (QoQ) rise in net profit at Rs 1,195 crore for Q2FY26 compared to Rs 1,141 crore in the previous quarter. Revenue grew 4.8 per cent QoQ and 5.1 per cent year-on-year (YoY) to Rs 13,995 crore. EBIT rose 15.1 per cent QoQ and 32 per cent YoY to Rs 1,699.4 crore, while EBIT margin improved to 12.1 per cent from 11.1 per cent. The board declared an interim dividend of Rs 15 per share.

Companies announcing their Q2 results today include Axis Bank, Indian Railway Finance Corporation, HDFC Life Insurance Company, HDFC Asset Management Company, L&T Finance, HDB Financial Services, Oberoi Realty, Tata Communications, KEI Industries, Mangalore Refinery and Petrochemicals, Angel One, Nuvoco Vistas Corporation, and Network 18 Media & Investments.

On Tuesday, October 14, Foreign Institutional Investors (FIIs) were net sellers for the second consecutive session, offloading equities worth Rs 1,508.53 crore. Domestic Institutional Investors (DIIs) were net buyers for the 35th straight session, purchasing shares worth Rs 3,661.13 crore. Indian markets ended lower on Tuesday, with the Nifty 50 falling 81.85 points (0.32 per cent) to 25,145.50 and the Sensex declining 297.07 points (0.36 per cent) to 82,029.98. India VIX rose over 1 per cent, reflecting increased volatility. All 11 sectoral indices closed in the red, led by weakness in financial services and banking stocks. Broader indices, including Nifty Midcap and Smallcap, also declined.

US markets ended mixed on Tuesday. The Dow Jones Industrial Average gained 202.88 points (0.44 per cent) to 46,270.46, while the S&P 500 slipped 10.41 points (0.16 per cent) to 6,644.31. The Nasdaq Composite declined 172.91 points (0.76 per cent) to 22,521.70. Trade tensions escalated as the US and China imposed new port surcharges on ocean shipping companies. China announced that the surcharges will apply to vessels owned, operated, constructed, or registered under the US flag, but ships built in China will be exempt.

Federal Reserve Chair Jerome Powell indicated that the central bank is likely to conclude its balance sheet reduction soon. He noted continued weakening in the US labor market and signaled a potential interest rate cut later this month. Powell also mentioned that the Fed would halt balance sheet runoff once reserve levels are sufficient for maintaining liquidity.

Gold prices rose 0.4 per cent to USD 4,155.99 per ounce as investors sought safe-haven assets amid trade tensions. The US dollar index remained flat at 99.055 after falling 0.2 per cent in the prior session, as Powell’s comments boosted rate-cut expectations. Crude oil prices extended losses after the International Energy Agency warned of a potential supply surplus in 2026. Brent crude futures declined 0.16 per cent to USD 62.29 a barrel, while US West Texas Intermediate futures fell 0.14 per cent to USD 58.62, both hovering near five-month lows.

For today, RBL Bank and Sammaan Capital will remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.