Another Rate Cut Hopes Boost Banking & Financial Stocks, Sensex & Nifty Move Toward Higher Levels

Mumbai: The Indian stock market opened on a positive note on Monday, supported by favorable global cues. The Sensex surged 616 points in early trade to reach 84,816 while the Nifty climbed 176 points to touch 25,971. Optimism over another potential U.S. Federal Reserve rate cut gave a strong push to financial and banking stocks, helping benchmark indices regain upward momentum.

Nifty 50’s Top Gainers Drive the Rally

After Friday’s flat closing, markets regained strength as encouraging developments over the weekend boosted investor sentiment. Weaker-than-expected inflation data from the United States raised expectations of two additional rate cuts by the Federal Reserve in 2025. Large-cap stocks played a crucial role in lifting the indices. Heavyweights such as Tata Steel, Bharti Airtel, Reliance Industries, TMPC, and State Bank of India showed gains between 1 percent and 2 percent.

The financial sector outperformed other segments, with the Nifty Bank Index rising 0.4 percent and the Nifty PSU Bank Index advancing 1.1 percent. Among Nifty 50 stocks, SBI Life, Reliance Industries, Tata Steel, Bharti Airtel, Shriram Finance, Tata Motors, Grasim Industries, and Hindalco were the top performers, showing gains ranging from 1.5 percent to 3 percent.

Fed Rate Cut Expectations Favor Indian Markets

A decline in U.S. consumer inflation in September fueled expectations that the Federal Reserve may cut interest rates during its upcoming policy meetings in October and December. Lower U.S. interest rates typically make emerging markets like India more attractive to global investors seeking higher returns. Consequently, hopes of a Fed rate cut are being seen as a positive development for Indian equities, especially in banking, finance, and metals sectors.

Disclaimer: This article provides general market information and should not be considered investment advice. Market conditions are subject to change; investors must conduct independent research or consult certified financial advisors.