The Indian equity markets edged higher on Wednesday, showing resilience ahead of the US Federal Reserve’s decision to cut interest rates by 25 basis points, bringing the benchmark to a range of 4.00%–4.25%.
Both the Nifty 50 and BSE Sensex registered gains, supported by optimism around US trade talks and the Fed’s softer stance. Analysts noted that the Fed’s move could enhance the yield differential between US and Indian assets, offering a modest boost to domestic equities.
Market experts highlighted that a favourable policy narrative could set the stage for strong foreign institutional investor (FII) inflows into Indian equities. After months of volatility in overseas flows, a dovish Fed is expected to act as a catalyst for renewed foreign participation.
The decision, while largely anticipated, reinforces the view that India remains an attractive investment destination amid global uncertainty.
