US Fed Cuts Rates by 25 bps | Signals More Cuts Ahead

The Federal Reserve has lowered its benchmark interest rate to 4.00–4.25%, with guidance for two more cuts in 2025. Why does this matter for India? - Lower US yields can drive fresh FII inflows into emerging markets like India. - A softer dollar provides relief for sectors with high USD exposure. - Growth stocks globally tend to get re-rated higher as discount rates fall. Key Indian stocks and sectors in focus: - IT Services (

, , , ): Likely beneficiaries as US clients see cheaper borrowing and improved tech spending. Overall sentiment remains positive for Indian equities, particularly IT and financials. The next trigger to watch will be the RBI’s stance and the trend in FII flows.