Indian Stocks Gain as Fed Rate-Cut Hopes Lift Sentiment
Mumbai, August 25, 2025 — Indian equities opened higher on Monday, supported by global optimism after U.S. Federal Reserve Chair Jerome Powell signaled the possibility of a rate cut as soon as September.
The Nifty 50 index advanced about 0.3% to 24,955, while the BSE Sensex rose to around 81,571 in early trade. Gains were spread across most sectors, with 13 of 16 industry groups in positive territory. Mid-cap and small-cap stocks also added roughly 0.4% each.
Technology shares led the rally, climbing 2.5%, as investors bet that lower U.S. borrowing costs would spur corporate IT spending.
Despite the upbeat mood, caution remains over trade tensions. U.S. President Donald Trump has announced additional tariffs of 25% on Indian imports, which could push duties on some goods up to 50% when they take effect later this week.
On the corporate front, Yes Bank rose more than 2% after regulators cleared a deal allowing Japan’s Sumitomo Mitsui Banking Corporation to purchase nearly 25% stake in the lender.
Market watchers said India is benefitting from the global shift toward risk assets, but external risks—including U.S. trade measures and China’s slowing growth—remain key factors for investors in the weeks ahead.
