Stock Market News: The cut in interest rates by the US Federal Reserve has had a clear impact on global markets. After a long period of weak sentiment and three consecutive days of decline, the Indian stock market made a strong comeback on Thursday. The balanced policy of the US Fed and the rate cut of 0.25 percent filled new energy among the investors, due to which both Sensex and Nifty ended the trading with gains. The rise in vehicle and metal sectors was the most effective in the market, which strengthened the indices despite fluctuations throughout the day.

BSE’s 30-share Sensex recovered from initial weakness and closed at 84,818.13 with a gain of 426.86 points or 0.51 percent. During trading, while on one hand it had slipped to a low of 84,150.19, on the other hand it also reached an upper level of 84,906.93. Similarly, NSE Nifty also showed a strength of 140.55 points or 0.55 percent and closed at 25,898.55. At the highest level of the day, Nifty had reached 25,922.80, which shows the increasing confidence among investors.

Shares of these companies rose

The biggest support for the rise in the market came from those companies whose shares performed strongly. Among the major Sensex companies, Eternal, Tata Steel, Kotak Mahindra Bank, UltraTech Cement, Maruti Suzuki, Sun Pharma, HDFC Bank, Tech Mahindra, Tata Motors, Infosys, Mahindra & Mahindra, Reliance Industries and HCL Tech were among the gainers. Better demand, improvement in results and sectoral strength took these companies to new heights. On the other hand, decline was seen in Asian Paints, Bajaj Finance, PowerGrid, ICICI Bank, Bharti Airtel and Titan, which made it clear that sector-wise gap still persists in the market.

Analysts believe that Fed’s rate cut has given a new direction not only to the Indian market but also to the global investment sentiment. According to Vinod Nair, Research Head, Geojit Investments Limited, the decline in 10-year bond yield in America means that the possibility of aggressive investment by foreign institutional investors may be less in the near future. However, on a short-term basis, this step has brought relief to emerging markets. Additionally, demand in India’s auto sector is stronger than expected, which supported the overall market performance. The IT sector also gained on expectations of increased spending.

What do experts say?

Talking about global markets, most of the indices in Asia remained in decline. Japan’s Nikkei, Hong Kong’s Hang Seng, South Korea’s Kospi and China’s Shanghai Composite all remained under pressure. Overvaluation of AI companies and rising bond yields in Japan negatively impacted sentiment in regional markets. There was a bullish atmosphere in European markets during afternoon trading, while American markets had registered strength on Wednesday.

Foreign institutional investors sold Rs 1,651 crore on Wednesday, due to which there was some pressure on the market. At the same time, domestic institutional investors provided stability to the market by purchasing about Rs 3,752 crore. The price of Brent crude, the international standard of crude oil, fell by 1.22 percent to $ 61.45 per barrel, which is a positive sign for the Indian economy.

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In terms of economy, America is the largest country in the world, whose GDP is $30.507 trillion. Meanwhile, the Federal Reserve, America’s central banking institution, has once again announced a reduction in interest rates. After this cut, the key rate has now become 3.9 percent, which was earlier 4.1 percent. This decision has come at a time when the American economy is facing a government shutdown and a decline in the rate of employment growth. However, the Fed says that this step was necessary to encourage economic growth and job creation.

Announcing the rate cut, Federal Reserve Chairman Jerome Powell said that the government shutdown has definitely affected economic activity, but this effect will not be permanent. He said that due to government work coming to a standstill, official figures of employment and inflation are not being released. Because of this, at present the Fed has to rely on economic signals from private institutions.

Decline in employment and rise in inflation became the reason for reducing rates.
The Fed had increased interest rates by 5.3 percent in the last two years to control inflation. Meanwhile, the pace of employment has slowed down, opportunities for new work are decreasing and consumer spending has decreased. The inflation rate is now at around 3 percent, which is more than the Fed’s target of 2 percent. Despite this, Powell said that now the focus will be on economic growth and increasing employment, because too tight monetary policy could have a negative impact on the market.

Impact on the American people and the world
This decision of the Federal Reserve is expected to provide relief to common American citizens. Loan installments will be cheaper, interest rates for houses and vehicles will decrease and it will be easier to take business loans. However, there will be a possibility of reduction in interest on savings accounts. This step is important at the global level also. Dollar may weaken due to low US rates and this is likely to increase investment in Asian countries including India.

Government shutdown becomes a big challenge
The federal shutdown currently going on in America is a result of the budget dispute between the government and Congress. Lakhs of government employees are without salary and the work of many departments has come to a standstill. Powell said that due to lack of government data, it has become difficult to decide the Fed’s policy. For this reason, the decision to reduce the rate in the next meeting to be held in December will depend on the circumstances.

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Us federal reserve cut interest rate: The threat of recession in the US is continuously increasing, so the central bank US Federal Reserve has taken a big step. The Federal Reserve on Wednesday approved a cut of 25 basis points in interest rates. That is, taking loans in America will be a little cheaper than before.

The Federal Reserve has indicated that by the end of this year it can cut the interest rates twice. Actually, there are serious concerns about the labor market in America. The speed of new jobs has slowed down and there is a danger of growing unemployment. In such a situation, the government wants to promote investment and consumption by cutting interest rates.

What will be the effect?

EMI of debt and home loan may decrease, which will increase people’s spending ability. Foreign investors can turn to emerging markets again, which can lead to a boom in the stock market. The position of other currencies can be stronger against the dollar, and the prices of items like gold and oil will be seen fluctuations.

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Federal reserve unchanged interest rates: Amidst the global uncertainties made due to tariffs, some changes will be made in the benchmark interest rates by the American Central Bank. But no change was made in the major interest parties and kept at 4.25 percent. After the Federal Open Market Committee meeting, this decision was taken by the Federal Reserve. This step of the US central bank is in line with experts of experts.

No change in major interest rates in America

The statement from the Federal Committee said that the risks of high unemployment and high inflation have increased. The fluctuations in net exports have not affected any kind of economic activities. Therefore, Treasury Securities and Agency will continue to reduce their holdings of date and agency Mortgage Backed Securities.

Earlier in the month of March, the American Central Bank Federal Reserve had not made any changes in the interest rates. Also, during the meeting held in January, he was left the same. Earlier, interest rates of 40 basis points in September 2024 and 25 basis points were cut in November.

Increased danger of inflation and energy

As soon as the Ferder was announced not to cut the interest rates from the Ferrender Bank, there was a decline in the US market. In the S&P500, 0.5 percent went down, while the Nasdaq composite also slipped 1 percent. However, Dou Jones average saw an edge and it climbed .01 percent i.e. 27 points.

If we talk about India, then in April of 2025, the Reserve Bank of India has cut 25 basis points for the second consecutive time to repo rate to 6.0. Since then, many banks have announced a cut in borrowed interest rates.

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Us Fed Rate Cut: The American Central Bank Federal Reserve has decided not to cut any interest rates. In the meeting of Federal Open Market Committee, the Federal Reserve has retained the interest rates at the current level 4.25 – 4.50 per cent. For the second consecutive time in 2025, the US Central Bank has decided to make no changes in interest rates. Interest rates were not changed even in the month of January.

The Federal Reserve may not have cut interest rates in March. But in 2025, Fed has indicated to cut interest rates twice. There is a possibility of deduction of 50 basis points in interest rates in 2025. The Federal Reserve has expressed concern over the growing uncertainty in the US economy due to the tariff plan of Donald Trump (Donald Trump). It has increased its estimate of inflation from 2.5 percent to 2.8 percent. The US economic growth rate (US GDP) estimate has been reduced from 2.1 percent to 1.7 percent.

Jerome Powell, chairman of the US Federal Reserve, considered a challenge to assess the impact on inflation due to the tariff. He said that the current survey shows that due to Trump’s tariff plan, there is a risk of increasing inflation and inflation is also increasing, due to which the trade policy is included.

In 2025, due to the cut in interest rates of the Federal Reserve twice, the US stock market has been brilliant and the market has closed with a huge rise. This has also affected the Asian markets and due to this, there are signs of opening of the Indian market rapidly.

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