Nifty Extends Rally to Day 8 as Sensex Gains on Fed Rate Cut Bets and U.S.-India Trade Optimism

Published On: 12/09/20252.1 min read

Indian stock markets showed strong resilience on Friday, continuing a bullish streak that has now stretched for eight consecutive sessions. The benchmark NSE Nifty 50 index climbed 109 points or 0.43% to finish at 25,114, while the BSE Sensex surged 356 points or 0.44%, closing at 81,905. This persistent rally is being driven largely by growing optimism around the U.S. Federal Reserve’s potential rate cut and renewed hopes for boosting trade relations between the U.S. and India.

Market watchers are currently fixated on the Fed’s policy outlook, with speculation rising that the U.S. central bank may ease interest rates in the near term to support economic growth. This anticipation is sending positive ripple effects across global markets, with India’s indices responding strongly in kind. Investors are encouraged by the possibility that cheaper borrowing costs could spur both global and domestic demand, benefitting key sectors.

In addition to global cues, hopes around reviving and expanding U.S.-India trade ties have added further fuel to the market’s upward momentum. Enhanced trade relations are expected to open new avenues for Indian exporters and companies involved in sectors linked to bilateral commerce, such as information technology, pharmaceuticals, and manufacturing. The prospect of a trade revival is energizing investor sentiment, contributing to the rally’s strength.

Sector-wise, the market today did experience some volatility and mixed performances. Information Technology stocks remained a bright spot, capitalizing on the Fed rate cut narrative that traditionally bodes well for tech investments. Meanwhile, other sectors showed varied responses to global developments and domestic corporate news. Despite these fluctuations, the overall tone of the market remained bullish.

The steady climb in indices, especially the Nifty extending its rally to eight days, underscores strong buyer confidence and favorable market conditions. The mood on Dalal Street reflects an optimistic outlook that recent economic signals and geopolitical factors will continue to support growth and investment.

For investors, this phase presents a moment to stay tuned to global monetary policy updates, particularly from the U.S., as well as developments in international trade agreements. Maintaining a watchful eye on sector-specific trends will also be crucial in navigating the mixed reactions within the market.

In summary, India’s stock markets are riding a wave of positivity led by expectations of a Fed rate cut and promising U.S.-India trade negotiations, pushing the Nifty and Sensex to notable gains. While some sector volatility remains, the overall market sentiment remains upbeat, setting an encouraging tone as investors look ahead to further developments.

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