Indian Equities Edge Higher Amid Global Market Optimism
MUMBAI, October 15, 2025 — Indian stock markets opened higher on Wednesday, tracking gains across Asian peers as growing optimism over an imminent U.S. Federal Reserve rate cut lifted investor sentiment.
At 9:52 a.m. IST, the Nifty 50 (.NSEI) advanced 0.28% to 25,216.2, while the BSE Sensex (.BSESN) climbed 0.20% to 82,192.33, extending the previous session’s modest gains.
Market analysts attributed the uptrend to renewed global risk appetite and strong expectations that the Federal Reserve could announce a fresh rate cut later this month, following signs of economic stabilization in the U.S.
Broader Market Strength and Sectoral Performance
Fifteen of the sixteen major sectoral indices traded in positive territory, reflecting broad-based buying interest across the market.
- Mid-cap stocks (.NIFMDCP100) rose 0.7%, outperforming the benchmarks.
- Small-cap stocks (.NIFSMCP100) gained 0.3%, continuing their steady upward momentum.
Information technology (IT) companies led the rally, supported by upbeat quarterly earnings and positive guidance from industry leaders.
IT Sector Leads Market Rally
The NIFTY IT index (.NIFTYIT) advanced sharply, bolstered by solid results from Persistent Systems (PERS.NS), which surged 6.7% after posting higher revenue and profit for the September quarter.
Analysts noted that the Indian IT sector, which derives a significant share of revenue from the United States, stands to benefit from lower U.S. interest rates and improving client spending outlooks.
“IT earnings have started on a good note. Most companies have either reported in-line numbers or topped expectations. There has not been any disappointment and that is giving comfort to investors,”
— Sunny Agrawal, Head of Fundamental Equity Research, SBICAPS Securities
Other IT majors such as Infosys, TCS, and Wipro also saw modest gains as investors anticipated a rebound in overseas technology spending.
Positive Global Cues Drive Indian Market Sentiment
The broader Asian markets (.MIAPJ0000PUS) gained 1.3%, with investors betting that the Federal Reserve’s expected policy easing could help sustain global growth.
On Tuesday, Fed Chair Jerome Powell stated that while the U.S. labour market remains weak, the broader economy shows signs of firm footing. Powell reaffirmed that the inflation outlook remains largely unchanged from September, when the central bank implemented a 25-basis-point rate cut.
“Fed Chair Powell reinforcing expectations of an October rate cut and hinting to pause balance sheet run-off are good news for the bulls,”
— Prashanth Tapse, Senior Vice President (Research), Mehta Equities
Lower U.S. interest rates typically make emerging markets like India more attractive to foreign investors, as they offer higher yields compared to U.S. Treasuries and benefit from a weaker dollar.
Stock Highlights: ICICI Lombard Jumps on Strong Earnings
Among individual stocks, ICICI Lombard General Insurance (ICIL.NS) soared 7% after reporting a sharp increase in quarterly profits for the September period. The insurer’s strong performance reflected robust growth in premiums and a decline in claim ratios.
Other financial and banking stocks such as HDFC Bank, Kotak Mahindra Bank, and Axis Bank traded mixed, as investors weighed global monetary policy cues against domestic valuation concerns.
Outlook: Rate Cut Hopes Keep Bulls in Control
Market strategists expect the positive momentum to continue in the near term, driven by strong global cues, improving domestic corporate results, and expectations of foreign inflows into Indian equities.
However, renewed U.S.-China trade tensions and rising oil prices could pose near-term risks to sentiment.
“The Indian market remains well-positioned among emerging economies. A U.S. rate cut could further support liquidity inflows, especially into IT, banking, and infrastructure sectors,” said Rachit Mehra, Chief Economist at Mumbai-based firm ProsperInvest Advisors.
Summary: Fed Optimism Powers Indian Stocks Higher
The latest market rally underscores the growing confidence among investors that India’s economy and corporate earnings remain resilient amid global challenges.
With Fed rate cut expectations, robust IT earnings, and broad-based sector gains, analysts believe the Nifty 50 and Sensex could extend their upward trajectory through the remainder of October.
At the close of the morning session, Indian equities remained firmly in the green, supported by strong global tailwinds and optimism about the near-term monetary outlook.
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