Nifty 50 Trades Higher on Fed Rate Cut Hopes; IT Stocks Lead Early Gains

Indian equity markets kicked off the week on a positive note, buoyed by dovish comments from U.S. Federal Reserve Chair Jerome Powell. The NSE Nifty 50 opened 0.25% higher at 24,932, while the BSE Sensex began the session with a 194-point gain at 81,500. The bullish sentiment sustained through the morning, with the Nifty 50 climbing further to 24,951.95, up 0.33% by 11:35 AM.

Powell's remarks at the Jackson Hole symposium, where he indicated a potential interest rate cut as early as September 2025, reflecting positively on Indian equities.

In contrast to the broader indices, Bank Nifty opened slightly in the red, shedding 37 points or 0.07% to start the day at 55,112. Meanwhile, broader market indices showed strength, with mid- and small-cap stocks trading firm. The Nifty Midcap 100 index jumped 280 points to touch 57,909 in early trade.

Gainers and Losers

Among the top performers on the Nifty 50 were leading IT stocks, including Wipro, Infosys, Tech Mahindra, TCS, and HCL Technologies, as they benefited from favourable global cues and a weakening U.S. dollar outlook.

On the downside, ICICI Bank, Bharti Airtel, Zomato, Eicher Motors, and Apollo Hospitals featured among the early underperformers.

Key Stocks in Focus

Despite the overall optimism, some heavyweight stocks showed signs of pressure. Infosys, Reliance Industries, TCS, Bajaj Finance, and HCL Technologies were among the major movers during the morning session, experiencing heightened volatility.

Also Read: Nifty Smallcap 100 Up 0.38% as IDBI Bank, Navin Fluorine Lead Gains on Aug 25

Global Cue: Powell’s Balancing Act

At the annual Jackson Hole Economic Symposium, Fed Chair Jerome Powell struck a cautiously optimistic tone. While hinting at a possible rate cut in September, he emphasised that future monetary policy decisions will be data-driven, particularly hinging on inflation and employment trends. Powell’s balanced remarks, acknowledging progress on inflation while warning of lingering risks, resonated across global markets, boosting risk appetite.

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