Sensex: Experts observe that with the Fed rate decrease, markets are well-positioned for a year-end surge. The begin flat

Sensex: Despite global indicators becoming positive after the US Federal Reserve’s rate decrease and its dovish policy stance, the local stock markets began Thursday flat.

Experts think Indian stocks are still in a strong position for a year-end rally despite the slow start.

The BSE Sensex began the morning at 84,488.22, up 96.95 points (0.11 percent), while the Nifty 50 index opened at 25,791.50, up 33.50 points (0.13 percent).

Speaking to ANI, market analyst Ajay Bagga said that Indian market futures had increased further after the Fed’s statement but had slowed before opening.

“During the post-Fed market rebound and this morning in Asia, Indian market futures were up more than 100 points. Right before the markets open, those gains have been cut in half,” he said.

He continued by saying that the domestic market structure is still solid due to encouraging signals from the US Fed and the RBI.

Overall, Indian markets are well-positioned for a year-end surge thanks to favorable results from the US Fed and the RBI. There aren’t much expectations for the current US trade negotiating group visit. However, a robust consumer spending surge after the GST reduction at the end of September could support profitability in the December quarter, Bagga said.

“When combined with expectations from the Union Budget 2026, that is a strong setup,” Bagga added, highlighting elements that are presently affecting mood. The markets are being held back by the ongoing selling of FPIs and the extensive offers of primary and OFS markets, which are taking liquidity away from secondary markets. Positive things are ahead, and hopefully they will be followed through on.

Additionally, broader market indexes saw positive trading. The Nifty Smallcap 100 increased by 0.14 percent, the Nifty Midcap 100 increased by 0.34 percent, and the Nifty 100 was up 0.08 percent.

With the exception of Nifty FMCG and Media, the most of sectoral indexes were trading higher. Nifty IT increased by 0.48%, Nifty Auto increased by 0.25%, and Nifty PSU Bank increased by 0.61%.

Following the US Fed’s rate decrease, dovish stance, and announcement of USD 40 billion in asset purchases together with indications of more liquidity assistance, sentiment throughout the world strengthened. A declining US currency and dropping bond rates also had a favorable impact on markets.

According to Deepak Agrawal, CIO for Debt at Kotak Mutual Fund, there were few unexpected developments in the US policy decision. Overall, bond yields witnessed little movement since the policy conclusion had very few surprises on the rates side and produced no dovish revision in future guidance. Treasury rates on the 10-year fell to 4.16 percent. The most obvious pro-bond event in this setting is the abrupt shift to fresh balance-sheet growth. Indian government bonds would also decline due to the FOMC’s mild dovish slant,” he said.

Analysts anticipate that markets will continue to have a bullish tilt until the end of the year due to encouraging international signals and improved local mood.