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Tech Stocks Soar as US Fed Signals Rate Cut
25 Aug
Summary
- Sensex and Nifty indices close higher
- IT stocks outperform on global optimism
- Expectations of Fed rate cut in September
On August 25, 2025, Indian stock markets closed higher, with the benchmark Sensex and Nifty indices gaining significantly. This rally was primarily driven by a surge in information technology (IT) stocks, which were buoyed by expectations of a future rate cut by the US Federal Reserve.
According to Vinod Nair, Head of Research at Geojit Investments Limited, a wave of optimism swept through the domestic market, fueled by the anticipation of a Fed rate cut in September and a subsequent decline in the US 10-year yield. The IT index was the standout performer, with leading companies like Infosys, Tata Consultancy Services, and HCL Technologies posting gains of over 2.5%.
The positive sentiment in the market was also attributed to the proposed Goods and Services Tax (GST) rationalization, which is expected to boost consumption demand, and the favorable monsoon season, which could serve as a catalyst to navigate any uncertainty in the global trade environment.
