Sensex surges 350 pts, Nifty above 25,400, extend winning streak to 3rd day as US Fed begins rate cut cycle

Fed cut sparks buying in IT, banks as Sensex, Nifty edge higher

Indian equities kept up their winning streak for the third straight session on September 18, taking cues from the US Federal Reserve’s policy shift. The Fed trimmed rates by 25 basis points to a 4–4.25 percent band, marking the start of its first rate-cutting cycle in years. Chairman Jerome Powell further hinted at the possibility of two more reductions, with one pencilled in as far out as 2026, reinforcing expectations of a looser monetary path.

Around morning, the Sensex climbed 260.21 points, or 0.31 percent, to 82,953.92, while the Nifty added 72.90 points, or 0.29 percent, to 25,403.15. Market breadth leaned positive, with 1,656 shares advancing against 979 declines and 156 unchanged. Meanwhile, India VIX cooled another two percent, reflecting easing volatility.

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Technology stocks were the star performers, with the Nifty IT index leading gains. Rate cuts in the US are expected to underpin growth in the world’s largest economy, which bodes well for Indian IT exporters.

Heavyweights like TCS, Infosys, HCL Tech, Wipro, and LTI Mindtree rallied up to 2 percent in early trade. Financials, pharma, and real estate also added to the uptrend. In contrast, metals and PSU banks lagged, with Hindustan Zinc, Hindalco, and SBI under pressure.

Anand James, Chief Market Strategist at Geojit Financial Services, flagged near-term technical markers: “We are likely headed towards the 25,400–25,600 region without needing to dip, even though oscillators suggest some vulnerability. The downside marker has shifted higher to 25,280, but a slip below 25,200 could open the gates to 24,800.”

Arindam Mandal, Head of Global Equities at Marcellus Investment Managers, noted that the Fed’s move was largely in line with expectations.

“The 25 bps cut comes alongside guidance for two more potential reductions this year, conditional on data. What stood out was the Fed’s inflation commentary—prices are expected to stay above the 2 percent target until 2027, implying a seven-year stretch of elevated inflation. Job numbers remain pivotal, with the unemployment rate projected to peak at 4.5 percent by year-end,” he said.

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