US Fed cuts rates: What it means for Indian markets
The US Federal Reserve just cut its interest rates by 25 basis points. This is their first rate cut since December, and it's already lifting Indian stock markets and export-focused sectors.
Sensex, Nifty jump on rate cut news
Lower US rates usually mean cheaper global borrowing and a weaker dollar—good news for Indian companies that earn in dollars, especially IT and pharma.
After the announcement, both Sensex and Nifty jumped (up 308 and 92 points by midday), with optimism also fueled by ongoing US-India trade talks.
IT, pharma, and gems & jewelry sectors likely to benefit
Experts can't agree on what the RBI will do: some expect a rate cut to encourage lending, while others think rates will stay put but inflation forecasts could change due to rupee weakness.
Sectors like IT, pharma, and gems & jewelry may benefit most from the Fed's move, but banks might feel some pressure if lending margins shrink.
Keep an eye on RBI policy updates and global money flows—there could be more action ahead.