Gift Nifty Indicates a Positive Start for Indian Market After US Fed Announced a 25 bps Rate Cut

On September 18, 2025, Indian benchmark indices, Sensex and Nifty 50, are poised to open higher, continuing their recent upward momentum. The optimism follows mixed global cues after the US Federal Reserve announced a widely anticipated 25 basis point interest rate cut.

Gift Nifty Signals Positive Start

The Gift Nifty was trading around the 25,497 mark in early trade, indicating a premium of ~74 points over the previous Nifty futures close. This suggests a positive opening for the Indian stock market on Thursday, September 18.

Global Markets Overview

Asian markets were mostly in the green on Thursday, mirroring Wall Street’s mixed performance overnight. The Fed’s rate decision was in line with expectations, but Fed Chair Jerome Powell flagged concerns over a weakening US labour market and persistent inflation pressures.

In Asia, Japan’s Nikkei 225 advanced 0.26%, while South Korea’s Kospi rose 0.43%. However, Hong Kong’s Hang Seng futures signaled a weaker start.

US equity markets closed on a mixed note post the Fed's policy announcement. The Dow Jones Industrial Average gained 260.42 points (0.57%) to end at 46,018.32. Meanwhile, the S&P 500 edged down 6.41 points (0.10%) to 6,600.35, and the Nasdaq Composite lost 72.63 points (0.32%) to close at 22,261.33.

Indian Market Recap

On Wednesday, domestic equities closed higher as investor sentiment improved, supported by the resumption of trade discussions between India and the US. The Sensex surged 313.02 points (0.38%) to settle at 82,693.71, while the Nifty 50 climbed 91.15 points (0.36%) to close at 25,330.25.

Also Read: PSU Banks IOB, UCO Bank and Other Edge Higher as Government Plans Capital Infusion to Meet SEBI Norms

Fed Policy Highlights

The Federal Open Market Committee (FOMC) voted 11-1 in favour of reducing the benchmark federal funds rate by 25 basis points, bringing it to a target range of 4%–4.25%. The Fed also signaled the possibility of two additional rate cuts before the year ends, reflecting ongoing concerns about economic slowdown and softening labour conditions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.