What is the US Federal Reserve's plan for interest rates?

The US Federal Reserve is expected to cut interest rates in September, with traders now placing a nearly 90% chance of a rate reduction.

How did the Indian stock market perform last week?

The Indian stock market ended sharply lower on Friday, August 22nd, 2025, with the Sensex and Nifty 50 snapping their six-day winning streak.

Home / Business and Economy / US Fed's Rate Cut Boosts Indian Stocks Before Key Events

US Fed's Rate Cut Boosts Indian Stocks Before Key Events

Q: What key events will investors focus on this week in India?

Investors will closely watch the monthly F&O expiry, the US tariff deadline, India's GDP data, changes in the Nifty 50 index, trends in crude oil prices, and other global and domestic macroeconomic data.

25 Aug

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Summary

Sensex and Nifty expected to open higher on global cues
US Fed Chair's comments raise chances of September rate cut
Investors to focus on F&O expiry, US tariff deadline, India GDP data

US Fed's Rate Cut Boosts Indian Stocks Before Key Events

According to the news article, the Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Monday, August 25th, 2025, following positive global market cues. This optimism is driven by rising hopes of an interest rate cut by the US Federal Reserve.

Asian markets have traded higher, and the US stock market rallied last week, with the Dow Jones hitting a record closing high, after US Federal Reserve Chair Jerome Powell's Jackson Hole speech. Traders have now placed a nearly 90% chance of a rate cut in September, up from about 75% before Powell's remarks.

In the previous trading session on Friday, August 22nd, 2025, the Indian stock market ended sharply lower, with the Sensex and Nifty 50 snapping their six-day winning streak. This week, which is a holiday-shortened trading week, investors will focus on key stock market triggers, including the monthly F&O expiry, the US tariff deadline, India's GDP data, changes in the Nifty 50 index, trends in crude oil prices, and other global and domestic macroeconomic data.

Ajit Mishra, SVP of Research at Religare Broking Ltd., has advised investors to maintain a "measured long bias" and buy on dips in quality stocks with strong earnings visibility, while carefully managing event risks by trimming leveraged positions ahead of key data releases.

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