{"id":22758,"date":"2025-11-02T18:46:13","date_gmt":"2025-11-02T18:46:13","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/11\/02\/us-fed-cuts-rates-what-it-means-for-indian-markets-markets-news\/"},"modified":"2025-11-02T18:46:13","modified_gmt":"2025-11-02T18:46:13","slug":"us-fed-cuts-rates-what-it-means-for-indian-markets-markets-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/11\/02\/us-fed-cuts-rates-what-it-means-for-indian-markets-markets-news\/","title":{"rendered":"US Fed Cuts Rates: What It Means For Indian Markets | Markets News"},"content":{"rendered":"


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Last Updated:<\/span>

US Federal Reserve on Wednesday lowered its benchmark interest rate by 25 bps to 3.75%\u20134.00%, marking its second consecutive cut this year<\/h2>\n
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US Federal Reserve has announced its interest rate decision.<\/p>\n<\/figure>\n<\/div>\n

The US Federal Reserve on Wednesday lowered its benchmark interest rate by 25 bps to 3.75%\u20134.00%, marking its second consecutive cut this year. The central bank said future rate moves will be guided by risks to the US economy, evolving data and economic outlook.<\/p>\n

Powell Cautions Against December Cut Hopes<\/strong><\/h3>\n

Despite the cut, Fed Chair Jerome Powell signalled caution. He said expectations of another rate cut in December 2025 are not a \u201cforegone conclusion,” stressing that the situation is \u201cfar from it.” Markets now assign around a 68% probability to another 25 bps cut in December.<\/p>\n

Market Reaction Globally<\/strong><\/h3>\n

US markets closed mixed after the policy announcement \u2014 the Dow Jones and S&P 500 slipped, while the Nasdaq gained on tech strength. Asian markets opened mostly lower on Thursday as Powell\u2019s tone dampened near-term easing hopes.<\/p>\n

Impact on Indian Markets<\/strong><\/h2>\n

Short-Term Moves Already Priced In<\/strong><\/h3>\n

The Indian market is expected to react to the Fed outcome today. However, analysts note that the 25 bps cut was largely factored in during the recent rally. Still, easing US monetary policy could support foreign inflows into emerging markets like India.<\/p>\n

\u201cThe rate cut will be net positive in the longer term\u2026 lower US yields reduce the appeal of American bonds and some FII money will come to India,” said Avinash Gorakshakar. But he does not expect a sharp rally purely on this news.<\/p>\n

Prashanth Tapse of Mehta Equities added that a drop in US Treasury yields can ease global borrowing costs, encouraging \u201crisk-on” flows toward emerging markets.<\/p>\n

Cautious Tone Could Add Volatility<\/strong><\/h3>\n

US stocks and bonds fell with yields edging up after Powell signalled varying Fed views and downplayed December cut expectations.<\/p>\n

Ross Maxwell of VT Markets said the stance is supportive for growth assets but \u201cunlikely to spark a risk-on rally” unless inflation and labour data improve.<\/p>\n

Technical View on Nifty<\/strong><\/h3>\n

Nifty 50 index formed a small-bodied candle with a minor upper shadow on the daily chart, a sign of mild selling pressure emerging around this crucial resistance zone. The index is comfortably trading above its key moving averages.<\/p>\n

\u201cOn the indicator front, the RSI has gradually risen from 67.92 to 72.43 over the last three sessions, suggesting that buying strength is still present. Meanwhile, the ADX continues to rise, indicating that the broader trend is strong, which supports the case for further upside if Nifty 50 manages to break above immediate resistance levels,” said Sudeep Shah, Head \u2013 Technical Research and Derivatives at SBI Securities.<\/p>\n

According to him, the zone of 26,100 \u2013 26,150 will act as an immediate resistance for Nifty 50, and if the index manages to give a follow-through move above the level of 26,150, then the rally can continue further till the 26,350 level.<\/p>\n

While on the downside, the zone of 25,850 \u2013 25,800 will act as a crucial support for the Nifty 50 index, he added.<\/p>\n

Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.<\/strong><\/p>\n

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\"Aparna<\/figure>\n

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Aparna Deb<\/a><\/p>\n

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Follow News18 on Google<\/a>. Join the fun, play QIK games on News18<\/a>. Stay updated with all the latest business news, including market trends<\/a>,\u00a0stock updates<\/a>,\u00a0tax<\/a>, IPO,\u00a0banking finance<\/a>, real estate, savings and investments. To Get in-depth analysis, expert opinions, and real-time updates. Also Download the\u00a0News18 App<\/a> to stay updated.<\/span><\/div>\n
First Published:<\/span><\/p>\n
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October 30, 2025, 09:24 IST<\/p>\n<\/div>\n<\/div>\n

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Last Updated:October 30, 2025, 09:24 IST US Federal Reserve on Wednesday lowered its benchmark interest rate by 25 bps to 3.75%\u20134.00%, marking its second consecutive cut this year US Federal Reserve has announced its interest rate decision. The US Federal Reserve on Wednesday lowered its benchmark interest rate by 25 bps to 3.75%\u20134.00%, marking its…<\/p>\n","protected":false},"author":1,"featured_media":13522,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-22758","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/22758","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=22758"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/22758\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/13522"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=22758"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=22758"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=22758"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}