The Indian stock markets started firmly on Thursday (18 September) amidst mixed signals from Asian markets. The decision to cut interest rates by the US Federal Reserve had a positive impact on investors’ notion. This move of Fed saw a strong rise in IT shares, which gave the market support.
The 30 -share BSE Sensex opened at 83,108 with a gain of over 400 points. At 10:41 am, it was trading at 83,029.72 with a gain of 336.01 points or 0.41 percent. Similarly, the Nifty 50 of the National Stock Exchange (NSE) also opened firmly at 25,441. It was trading at 25,418 at 10:41 am, 88.45 points or 0.35 percent.
Federal Reserve cut interest rates
The US Federal Reserve has decided to cut its benchmark interest rate by 25 basis points, making it within the range of 4% to 4.25%. Federal Reserve President Geom Powell is expected to cut two more quarterly points this year. With a cut of quarter-percentage points, the Federal Reserve also indicated a continuous decline in borrowing costs for the remaining period of this year. Policy makers reacted to the concerns of the weak employment market. The move received the support of most of the people appointed by President Donald Trump in the central bank.
Global market
There was a mixed trend in the Asian markets on Thursday. The US Federal Reserve cut its benchmark interest rate between 4% to 4.25%, as required. Fed president Jerome Powell described the move as a “risk management cut”, not the response to economic weakness. The Federal Reserve also indicated that two more rates could be cut by the end of the year. One in 2026 and the other in 2027, while in 2028 no changes will be made.
Japan’s Nikkei index rose 0.8 percent to a new record level. Real estate and technology stocks led the Japanese shares upwards. Investors are now keeping a close watch on the two -day policy meeting of Bank of Japan. Most economists hope that interest rates will remain stable. Meanwhile, Kospi rose 0.80 percent, while ASX 200 fell 0.56 percent.
The US futures market climbed slightly after the market accepted the Fed’s decision on Wednesday. The session was full of ups and downs and the initial lead was faded. Dow Jones Industrial Averages (DJIA) rose 0.57 percent to close at 46,018.32 after reaching all -time high for some time. On the other hand, S&P 500 fell 0.10 percent to 6,600.35 and Nasdaq Composite fell 0.33 percent to close at 22,261.33.