Equity benchmark indices rose nearly 1% on Wednesday, supported by upbeat global cues and growing expectations of a US Federal Reserve rate cut later this month. Optimism strengthened after Fed Chair Jerome Powell said the labour market remained weak but the economy was stabilizing, hinting at the possibility of more rate cuts this year. Lower US rates typically enhance the appeal of emerging markets like India by reducing dollar and Treasury yields.
Market volatility eased as the India VIX dropped 4% to 10.76, reflecting improved investor confidence. The rupee also rebounded by 88 paise to 87.93 per US dollar, helped by a softer dollar index, weaker crude prices, and likely RBI intervention. Brent crude slipped 0.19% to $62.27 a barrel after the IEA projected a surplus in 2026, a positive for India’s import bill.
Asian markets traded higher, and Wall Street futures indicated strength. Additionally, hopes of an early India–US trade deal rose amid growing US-China tensions. Analysts, however, maintained a cautious stance, awaiting a breakout above 25,330 for sustained upside momentum.
