Sensex, Nifty open soft even as global tech rally lifts Asian markets

Markets are now pricing in an 85.1 percent probability of a 25-basis-point cut at the December 9–10 meeting

Indian markets opened marginally higher on November 25 even as global equities staged a strong rally. By 9:20 a.m., the Sensex slipped 0.12 percent, or 97.67 points, to 84,803, while the Nifty also traded lower. Among the top performers on the Sensex were BEL, Eternal and Tata Steel, while PowerGrid, Infosys and Tech Mahindra emerged as the major laggards.

Across Asia, share markets climbed as expectations strengthened that the Federal Reserve may deliver an interest rate cut in December. Investors rotated back into global technology stocks, brushing aside concerns that the sector was becoming overheated. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1 percent, led by tech names, recovering part of last week’s 4 percent slide. The gauge remains on track for a 3.8 percent monthly decline — its first since March. Japan’s Nikkei gained 0.8 percent in early Tuesday trade after a holiday break, following a sharp 3.5 percent drop last week amid a wave of risk aversion.

Rate-cut hopes accelerated after Fed Governor Christopher Waller signaled that weakening US labour data may justify another quarter-point reduction. Markets are now pricing in an 85.1 percent probability of a 25-basis-point cut at the December 9–10 meeting, sharply higher than the 42.4 percent odds seen a week earlier, according to the CME FedWatch Tool. San Francisco Fed President Mary Daly added to the momentum, telling the Wall Street Journal she supports cutting rates next month given what she described as a deteriorating job market.

On Wall Street, optimism in tech pushed major indices sharply higher. The Dow gained 0.44 percent, the S&P 500 jumped 1.55 percent and the Nasdaq soared 2.69 percent, marking its biggest single-day rise since May 12 and strongest two-day rally since November 2024. U.S. stock and bond markets will be shut on Thursday for Thanksgiving and operate on a shortened schedule on Friday.