Stock markets log gains in line with rally in global peers on U.S. Fed rate cut hopes

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A view of the Bombay Stock Exchange in Mumbai.

A view of the Bombay Stock Exchange in Mumbai.
| Photo Credit: Reuters

Benchmark indices rebounded on Monday (August 25, 2025), with the BSE Sensex climbing 329 points, tracking a rally in global equity markets, on hopes of a potential U.S. Federal Reserve rate cut.

Buying in IT stocks were also instrumental in driving the markets higher.

The 30-share BSE Sensex climbed 329.06 points or 0.40% to settle at 81,635.91. During the day, it jumped 492.21 points or 0.60% to 81,799.06.

The 50-share NSE Nifty went up by 97.65 points or 0.39% to 24,967.75.

From the Sensex firms, Infosys, Tata Consultancy Services, HCL Tech, Tech Mahindra, Tata Motors, Sun Pharma, Maruti and Titan were among the major gainers.

Bharat Electronics, Asian Paints, Bharti Airtel and ICICI Bank were among the laggards.

In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index, and Hong Kong’s Hang Seng settled in positive territory.

Markets in Europe were trading lower.

The U.S. markets ended sharply higher on Friday (August 23, 2025). The Dow Jones Industrial Average surged 1.89 per cent, the Nasdaq Composite climbed 1.88%, and the S&P 500 edged higher by 1.52%.

“A wave of optimism swept through the domestic market, driven by expectations of a Fed rate cut in September and a subsequent decline in the U.S. 10-year yield. The IT index outperformed, buoyed by favourable global sentiment.

“The domestic levers stay positive with the proposed GST rationalisation to push consumption demand, and a good monsoon season could serve as a catalyst to navigate any uncertainty in the global trade environment,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,622.52 crore on Friday (August 23, 2025), according to exchange data.

Global oil benchmark Brent crude traded 0.34% up at $67.96 a barrel.

On Friday (August 23, 2025), the Sensex tumbled 693.86 points or 0.85% to settle at 81,306.85. The Nifty dropped 213.65 points or 0.85% to 24,870.10.

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