Sensex, Nifty Set for Strong Start as Global Markets Rally on Fed Rate-Cut Hopes

Sensex and Nifty 50 are expected to open higher on Thursday, supported by strong global market sentiment and renewed optimism around an upcoming US Federal Reserve rate cut. Asian markets traded in positive territory, mirroring Wall Street’s strong overnight rally.

On Wednesday, Indian equities saw robust buying across sectors, helping the benchmark Nifty 50 close above the 26,200 mark. The Sensex surged 1,022.50 points (1.21%) to end at 85,609.51, while the Nifty 50 gained 320.50 points (1.24%) to settle at 26,205.30. Analysts say the environment remains favourable, supported by improved demand outlook for Q3, expectations of a pickup in capital expenditure, and hopes of rate cuts by both the RBI and the US Fed. Together, these factors could push markets towards all-time highs.

Asian Markets

Asian indices opened higher on Thursday, buoyed by global risk-on sentiment and rising expectations of a US rate cut. Japan’s Nikkei 225 climbed 1.42%, the Topix rose 0.64%, South Korea’s Kospi gained 1.05%, and the Kosdaq added 0.39%. Hong Kong’s Hang Seng inched up 0.12%, while China’s CSI 300 remained flat.

Gift Nifty

Gift Nifty traded near 26,430 — around 49 points above the previous close — signalling a positive start for Indian markets today.

Wall Street

US markets closed with healthy gains on Wednesday, led by strong buying in technology stocks. Expectations of a December Fed rate cut boosted sentiment. The Dow rose 314.67 points (0.67%) to 47,427.12. The S&P 500 gained 46.73 points (0.69%) and the Nasdaq advanced 189.10 points (0.82%) to 23,214.69.Major tech stocks performed strongly: Nvidia gained 1.37%, AMD rallied 3.93%, Microsoft added 1.76%, Dell jumped 5.8% and Tesla rose 1.71%.

China’s Industrial Profits

China reported a 1.9% rise in industrial profits for the January–October period, following a 3.2% gain in January–September. The improvement suggests stabilizing demand and easing supply-chain pressures.

IMF on India’s GDP Outlook

The International Monetary Fund says India’s GDP growth is expected to reach 6.6% in FY26, with GST reforms helping offset the impact of recent US tariff hikes. The IMF noted that India’s economy remains strong, with real GDP expanding 7.8% in Q1 FY26 after growing 6.5% in FY25.

Cabinet Decisions

The Union Cabinet approved a ₹7,280 crore scheme to support the domestic manufacturing of rare earth permanent magnets (REPM). According to Union Minister Ashwini Vaishnaw, the incentive structure will help India become self-reliant in this strategically important segment within 3–4 years.

Gold Prices

Gold remained stable after recently touching a one-week high. Spot gold traded near $4,162.98 per ounce, while US December futures dipped 0.1% to $4,158.60 per ounce.

Crude Oil Prices

Crude oil prices edged lower on growing expectations of a possible Ukraine-Russia ceasefire. Brent crude slipped 0.3% to $62.92 per barrel, while WTI fell 0.4% to $58.44 per barrel.