25 Aug 2025 (Punjab Khabarnama Bureau): Indian stock markets opened higher on Monday, mirroring a rally in global equities, as investor sentiment strengthened on growing expectations of a possible interest rate cut by the U.S. Federal Reserve later this year. Optimism that looser monetary policy in the world’s largest economy could stimulate global growth and capital flows boosted risk appetite across Asian and European markets.
Domestic Market Performance
At mid-session, the BSE Sensex surged over 400 points, while the NSE Nifty 50 gained around 120 points, with buying interest broad-based across banking, IT, auto, and metal stocks. Market analysts said easing global bond yields and a softer U.S. dollar encouraged foreign institutional investors (FIIs) to step up purchases in Indian equities.
Among the top gainers on the Sensex were HDFC Bank, Infosys, Tata Steel, and Maruti Suzuki, all rising between 1.5–3%. Meanwhile, broader market indices, including the Nifty Midcap 100 and Nifty Smallcap 100, also outperformed, reflecting positive sentiment among retail and domestic investors.
Global Market Cues
Global peers extended last week’s rally as investors bet the U.S. Fed would cut rates to counter slowing growth and tame financing costs. Asian markets, including Japan’s Nikkei and Hong Kong’s Hang Seng, posted solid gains, while European futures indicated a higher open. Wall Street futures also traded in the green, signaling continued bullish momentum.
Fitch’s reaffirmation of India’s sovereign rating at ‘BBB-’ with a stable outlook last week also added to the positive mood, reinforcing confidence in India’s economic resilience despite global headwinds.
Sectoral Trends
Banking and financial stocks led the charge, supported by strong credit growth and robust earnings forecasts. IT stocks gained as a weaker dollar is expected to aid export competitiveness. Metal and auto counters rose on hopes of improved global demand once U.S. monetary easing takes effect. Energy stocks, however, traded mixed as crude oil prices edged higher on supply concerns.
Expert Views
Market strategists noted that while the current rally is driven largely by global liquidity hopes, domestic fundamentals also remain supportive. “Expectations of a Fed rate cut have fueled global risk-on sentiment. For India, robust GDP growth, controlled inflation, and resilient corporate earnings make equities attractive in the medium term,” said a senior market analyst at a leading brokerage.
However, experts cautioned that volatility could persist as investors await official U.S. Fed commentary in the coming weeks. Any delay or reduction in anticipated rate cuts could trigger profit-booking across global markets, including India.
Outlook
Analysts expect Indian markets to remain volatile but biased upward in the near term, supported by foreign inflows and improving domestic demand. Investors are advised to stay stock-specific, with banking, IT, and auto sectors likely to outperform.
Summary
Indian stock markets gained sharply in sync with global peers, fueled by hopes of a U.S. Fed rate cut. Banking, IT, and auto stocks led the rally as investor sentiment improved.