Pre-Market Report: Indian Market Set for a Positive Start on Fed Rate Cut Hopes

Global Market Cues

Global markets displayed a mixed, but generally positive, reaction following the US Federal Reserve's announcement on Wednesday, September 17, 2025, to cut its benchmark interest rate by 25 basis points, bringing it to a range of 4% to 4.25%. The Fed also indicated the possibility of two more quarter-percentage-point cuts this year.

• US Markets: Wall Street saw a mixed close. The Dow Jones Industrial Average rose by 260.42 points (0.57%) to 46,018.32, reaching an intraday record high, while the S&P 500 slipped 0.1% (6.41 points) to 6,600.35, and the tech-heavy Nasdaq Composite fell 0.3% (72.63 points) to 22,261.33. Investors remained cautious ahead of the Fed's decision, though the cut was largely anticipated.
• European Markets: European stocks closed mixed on Wednesday. The pan-European Stoxx 600 edged down 0.03%, but the UK's FTSE 100 gained 0.14% and Germany's DAX gained 0.13%. France's CAC 40, however, closed down 0.4%.
• Asian Markets: Most Asian markets were trading in the green in early Thursday trade. Japan's Nikkei 225 advanced by 0.26% to 0.78% to a record high, and South Korea's Kospi rose 0.43%. China's Shanghai Composite, however, saw a slight decline of 0.01%.
• Crude Oil: Crude oil prices eased after the Fed rate cut, with Brent crude trading around $68 per barrel and West Texas Intermediate (WTI) near $64 per barrel. This followed earlier gains driven by geopolitical tensions.
• Gold: Gold prices saw a slight dip on September 18, after hitting a record high of $3,707.57 per ounce on Wednesday post-Fed announcement. In India, gold was priced at ₹110,330 per 10 grams.
• Dollar Index (DXY): The US Dollar Index (DXY) rose by 0.22% on Wednesday, fluctuating after the Fed's rate cut but recovering on hawkish comments from Fed Chair Powell, trading around 96.87 to 97.04.

GIFT Nifty and Domestic Cues

The Indian market is expected to open higher today, Thursday, September 18, 2025, largely influenced by the positive global sentiment stemming from the US Fed's rate cut. GIFT Nifty was trading around the 25,512 level in early trade, indicating a premium of approximately 88 points from the Nifty futures' previous close, signaling a gap-up opening for the Indian benchmark index. Other reports noted GIFT Nifty trading at 25,497 (74 points premium) or 25,403 (71 points higher).

On Wednesday, the domestic equity market closed higher for the second consecutive session, with the Nifty 50 settling 0.36% higher at 25,330.25 and the Sensex surging 0.38% to close at 82,693.71. Foreign Portfolio Investors (FPIs) were net sellers, offloading stocks worth approximately ₹989.81 crore, while Domestic Institutional Investors (DIIs) remained net buyers for the eighth straight session, purchasing stakes worth ₹2,205.12 crore. The US Fed's rate cut is generally viewed as a positive for emerging markets like India, potentially boosting foreign fund inflows and supporting rupee stability. Analysts suggest that the Indian market's fundamental growth story remains robust. Key support for the Sensex is seen in the 82,500-82,200 range, with resistance at 83,000-83,200, while Nifty faces immediate resistance at 25,500.

Key Stocks in Focus

Several stocks may see action based on recent corporate developments:

• Shree Digvijay Cement: The company appointed Axis Capital to manage an open offer for acquiring up to 3.85 crore shares, representing 26% of its expanded share capital.
• Bajaj Finserv: The company has laid out ambitious targets for 2029, aiming for a 20-22% increase in total income to ₹3 lakh crore, an 18-22% growth in profit to ₹20,000 crore, and a 15-17% rise in its customer base to 20 crore.
• Apar Industries: Its arm's name has been changed to Apar USA LLC from CEMA Wires & Cables LLC.
• Poonawalla Fincorp: The board approved the allotment of 3.3 crore shares, valued at nearly ₹1,500 crore, to its promoter, Rising Sun.
• Escorts Kubota: The company has introduced a new combine harvester in Punjab and Haryana.
• Indosolar: Promoter Waaree Energies plans to sell up to 61 lakh shares (14.66% stake) via an Offer for Sale (OFS) on September 18 and 19, with a floor price of ₹500 per share.
• JSW Steel: The company is in a definitive agreement to acquire additional economic interest in M Res NSW for $60 million.
• Cohance Lifesciences: Jusmiral Holdings is set to sell 1.9 crore shares (5.1% stake) worth approximately ₹1,756.2 crore, with the floor price fixed at ₹900 per share.
• Marico: Officials from the Income Tax department visited some of the company's offices and manufacturing units, and the company is cooperating with the proceedings.

Key Events to Watch Today

While there are no major Indian economic data releases scheduled for today, global events will be closely monitored:

• European Central Bank (ECB): President Christine Lagarde is scheduled to speak.
• Eurozone Data: Eurozone current account data and European construction output data are due.
• Bank of England (BoE): The BoE will announce its monetary policy decision on UK interest rates.
• United States: US jobless claims data will be released.

TAGS: Pre-Market, Stock Market, Nifty, Sensex, Market Update

Tags: Pre-Market Stock Market Nifty Sensex Market Update