Nifty set to open higher after US Fed delivers rate cut

The Indian equity benchmarks are set to open higher on Thursday as indicated by Nifty futures traded on at Gift city in Gandhinagar. Nifty futures at Gift city rose 0.23 per cent or 58 points to 25,413 after the US Federal Reserve slashed interest rates by 50 basis points, marking its first rate cut in more than four years.

Asian markets were trading on a mixed note with Japan's Nikkei rising 2.55 per cent, Singapore's Straits Times advancing 0.09 per cent, Hong Kong's Hang Seng gaining 0.06 per cent while South Korea's KOSPI declining 0.06 per cent.

Overnight, US stocks surged on Wednesday after the Federal Reserve slashed interest rates by 50 basis points, marking its first rate cut in more than four years. The decision came as the central bank expressed growing confidence that inflation was moving closer to its 2 per cent target, shifting its focus towards maintaining a healthy labour market.

The Fed's decision reflects market expectations that had fluctuated in recent days. According to the CME's FedWatch Tool, there was a 65 per cent probability of a 25 basis point cut last week, but this shifted to a 57 per cent chance for the more substantial 50 basis point cut earlier on Wednesday.

The Dow Jones Industrial Average rose 165.62 points, or 0.40 per cent, to close at 41,771.80. The S&P 500 gained 29.06 points, or 0.52 per cent, to 5,663.64, and the Nasdaq Composite climbed 139.26 points, or 0.79 per cent, ending the day at 17,767.32.

Back home, foreign institutional investors bought shares worth Rs 1,154 crore on Wednesday while domestic institutional investors bought shares worth Rs 152 crore, data from the National Stock Exchange showed.

FIIs have so far this month bought shares worth Rs 30,901 crore, data from the NSDL showed.

Stocks to Watch

Macrotech Developers: To acquire Ivanhoe's stake in Maharashtra digital infrastructure entities for Rs 240 crore.

Indian Renewable Energy Development Agency: Government allowed up to 7 per cent stake dilution via QIP.

Garden Reach Shipbuilders & Engineers: Received an additional $54 million contract from Germany’s Carsten Rehder for 4 multi-purpose vessels.

GE T&D India: Promoters will sell up to a 15.6% stake via OFS on September 19-20, with the floor price set at Rs 1,400 per share, a 21% discount to the current market price.

Nazara Technologies: Raised up to Rs 900 crore through a preferential issue at Rs 954.27 per share. The company also acquired a 19.35% stake in its subsidiary, Absolute Sports (Sportskeeda), for Rs 145 crore, increasing its ownership to 91%.

Power Grid: Won the bid for the Rajasthan-Madhya Pradesh transmission project.

BL Kashyap: Secured a Rs 221 crore order from SSS Realty & Co. for a construction project in Bangalore, boosting its total order book to Rs 3,546 crore.

(With Reuters inputs)