Nifty, Sensex Extend Gains for Third Day Following US Fed Rate Cut

Swift Summary:

• Indian stock indices rose for the third consecutive session following a US Federal Reserve interest rate cut of 25 basis points, which matched expectations.
• NSE Nifty closed at 25,423.60 (up 0.4%, +93.35 points), while BSE Sensex ended at 83,013.96 (up 0.4%, +320.25 points).
• India’s Volatility index (VIX) fell by 3.5% to a record low of 9.89, reflecting reduced risk perception among traders.
• Mid-cap and small-cap indices recorded weekly gains of 1.8% and 2.3%, respectively; daily increases were modest at +0.3% and +0.1%.
• Foreign portfolio investors (FPIs) purchased shares worth ₹366.7 crore on Thursday; domestic portfolio investors bought shares totaling ₹3,326 crore.

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Indian Opinion Analysis:

India’s stock markets are showing resilience as global financial developments like the US Federal reserve’s rate cuts positively influence investor sentiment domestically and internationally-a sign of growing reliance on external stability factors in shaping market behavior here at home.

The record low Volatility index suggests that traders perceive minimal short-term risks ahead, which can bolster market activity but may also signal complacency in anticipating external shocks such as geopolitical tensions or economic policy changes globally or locally.

Robust participation from both foreign and domestic institutional investors highlights a healthy mix driving capital inflows to equity markets in India-a positive resistance against international uncertainties but contingent upon continued economic performance domestically to maintain this trajectory.

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