US Fed’s 25 bps cut sends seismic waves through Dalal Street: Sectoral winners & losers revealed
Wall Street's monetary move just rocked Indian markets—hard.
The Domino Effect Hits Mumbai
Rate cuts ripple faster than crypto FOMO when the Fed makes a move. Suddenly every fund manager's spreadsheet needs recalibrating.
Winners Circle Emerges
Real estate and auto stocks surge on cheaper credit prospects. Banks brace for margin compression while lenders count potential gains.
Losers Licking Wounds
Export-heavy sectors grimace as currency dynamics shift. Traditional safe havens suddenly look less appealing than yesterday's blockchain pitch.
The Street's always chasing the next narrative—today it's 25 basis points, tomorrow it'll be some central banker's eyebrow twitch. Because nothing moves markets like other people's money decisions.
Divergent views on RBI’s next move
Market experts believe that the RBI may be inclined to mirror the trajectory in the upcoming MPC meeting. “This clearly paves the way for RBI also to MOVE to cut rates given the slowdown in credit off take and to spur growth in the economy,” said Vishal Goenka, Co-Founder of IndiaBonds.com.
Meanwhile, Naval Kagalwala, COO & Head of Products at Shriram Wealth, expects the “RBI MPC to stay put on rates in the upcoming meeting, though revisions in CPI projections (following GST rate rationalisation) and tweaks to underlying assumptions will be closely watched, given the sharp depreciation in rupee and ongoing geopolitical uncertainty.”
Market snapshot
Indian equity indices opened in the green taking cues of the Fed cut and Optimism of bilateral trade talks with the US.
Nifty 50 and Sensex rallied as the investors’ risk appetite improved. IT stocks, which have large US revenue exposure, led the advance — a pattern seen in several brokers’ morning notes.
Also read
Dow Jones, S&P 500, NASDAQ Composite and Dollar Index: How they reacted to Fed rate cut and what’s next?
Sensex traded 308.05 pts or 0.37 per cent higher at 83,001.76 at 12.09 pm after hitting an intraday high of 83,141.21 against the previous close of 82,693.71. Nifty ROSE by 92.25 pts or 0.36 per cent to 25,422.50 (close to day’s high of 25,448.95.
Puneet Singhania, Director at Master Trust Group, noted that a more significant catalyst for market sentiment WOULD be progress on the India-US trade deal, as the easing of tariff barriers could relieve existing pressures.
Sectoral winners
IT majors with significant US revenues will benefit. The sector is well-positioned to benefit from lower borrowing costs in the US and potential currency tailwinds, according to Rajesh Palviya, SVP Research at Axis Securities.
Pertaining to the pharmaceuticals and export-oriented healthcare sector, a softer dollar and improved global liquidity can lift demand and valuations for pharma exporters.
Industry players see the rate cut as a welcome move for the gems and jewellery sector, with the US being a large market for exports. With respect to gold, Colin Shah, MD, Kama Jewelry, expects Gold prices to be elevated with lower US yields making the metal more attractive to investors.
Sectoral losers — pressure points to watch
Banks & NBFCs, showcasing gains in today’s trade due to easing rates, remain vulnerable to margin pressures. Lower global rates can compress net interest margins if deposit and lending rates in India adjust, and domestic banks are sensitive to a fall in short-term yields.
Currency front and capital flows
Rajesh Palviya, SVP Research at Axis Securities, said the Fed’s dovish stance is expected to attract foreign capital to India and strengthen the rupee. Markets are watching portfolio flows.
Singhania added that the Fed’s projection of an additional 50 bps rate cut in 2025 would substantially improve conditions and strengthen FII positioning in Indian markets. In the NEAR term, companies with overseas borrowings and export-oriented sectors are likely to benefit, creating selective investment opportunities.
Also read
Fed rate cut may boost mood as fund managers warm up to Indian equities
Commodities
Commodities market experts noted the US Fed Reserve still signalled two more rate cuts this year, which could support gold in the medium term. However, gold prices declined in domestic futures trade on Thursday following a steady recovery in the dollar.
For investors
IT and pharma stocks are the obvious short-term beneficiaries. Pertaining to banking and NBFCs, investors should monitor NIM guidance and signs of deposit repricing domestically
For commodities exposure, investors should watch gold for volatility around dollar moves. Oil needs demand signals to follow through.
However, the US Fed’s rate cut should be seen as just one of several macro factors. Investors also need to watch out for FII flows, rupee movements, RBI guidance, and sectoral earnings.
Published on September 18, 2025
