FX.co ★ India Equities Snap Losing Streak on Rate Cut Hopes

On Wednesday morning, the BSE Sensex rose by 331 points, or 0.4%, reaching 82,361, thereby breaking a two-day losing trend. This uplift mirrored gains seen in Asian markets amid increasing anticipation of a US interest rate reduction, following signals from Federal Reserve Chair Jerome Powell about weaknesses in the labor market. Additionally, domestic investor sentiment received a boost from September’s inflation data, which came in below the Reserve Bank of India's target range, fueling hopes for a rate cut in the December policy meeting. Parallel to this, the Nifty 50 increased by 0.4%, while small-cap and mid-cap indices saw gains of 0.3% and 1.0%, respectively. Investor confidence was further bolstered as the International Monetary Fund upgraded its forecast for India’s GDP growth for FY2025/26 to 6.6%. Nearly all sectors experienced positive trading activity, primarily led by financial services, technology, and banking stocks. Despite this, ongoing trade tensions between the US and China limited further gains. Notable early gainers included Nestle India (1.6%), Bajaj Finserv (1.6%), Asian Paints (1.4%), Bajaj Finance (1.3%), and Power Grid (1.1%).