Nifty, Sensex open flat, experts note markets well positioned for year-end upswing with Fed rate cut

MUMBAI: The domestic stock markets opened on a flat note on Thursday, even as global cues turned supportive following the US Federal Reserve’s rate cut and its dovish policy tone. Despite the muted start, experts believe Indian equities remain well positioned for a year-end upswing.

The Nifty 50 index opened at 25,791.50, gaining 33.50 points (0.13 per cent), while the BSE Sensex started the session at 84,488.22, up 96.95 points (0.11 per cent).

Market expert Ajay Bagga, said Indian market futures had shown stronger gains post the Fed announcement but moderated ahead of opening. “Indian market futures were up over 100 points during the post-Fed recovery in markets and this morning in Asia. Those gains have halved for now, just before the markets open,” he said.

He added that with positive signals from both the RBI and the US Fed, the domestic market setup remains strong. “Overall with positive outcomes from the RBI and the US Fed, Indian markets are well positioned for a year end upswing. Expectations are low from the present visit of a US Trade negotiation delegation. However, earnings should rebound in the December quarter on the back of a strong consumption impulse post the GST cuts of end September,” Bagga noted.

Highlighting factors that are currently weighing on sentiment, Bagga said, “Coupled with expectations from the Union Budget 2026, that is a strong setup. What is holding back the markets is continued FPI selling and massive primary market and OFS offerings which are diverting liquidity from secondary markets. Positive open ahead, hopefully there is a positive follow through as well.”

Broader market indices also traded in the green. The Nifty 100 was up 0.08 per cent, Nifty Midcap 100 gained 0.34 per cent, and Nifty Smallcap 100 rose 0.14 per cent. Across sectoral indices, most segments were trading higher except Nifty FMCG and Media. Nifty Auto gained 0.25 per cent, Nifty IT rose 0.48 per cent, and Nifty PSU Bank climbed 0.61 per cent.

Global sentiment improved after the US Fed cut rates, maintained a dovish tone, and announced asset purchases of $40 billion, with hints of further liquidity support. Markets also reacted positively to easing bond yields and a weakening US dollar.

Deepak Agrawal, CIO-Debt, Kotak Mutual Fund, said the US policy outcome had only minor surprises. “Overall, given the policy outcome contained very limited surprises on the rates side and delivered no dovish shift in forward guidance, bond yields saw no great move–the 10-year Treasury dropped to 4.16 per cent. In this context, the sudden pivot to renewed balance-sheet expansion stands out as the clearest pro-bond development. Given the slight dovish tint in the FOMC Indian govt bonds shall ease as well”, he said.

With supportive global cues and improving domestic sentiment, analysts expect markets to maintain a positive bias through the year-end. (ANI)