The Indian equity indices recorded a positive close on Monday, fueled by market speculation of a potential rate cut by the US Federal Reserve next month. The rally was predominantly led by strong performance in major IT stocks.
The Sensex finished the session at 81,635.91, marking a gain of 329.06 points or 0.40%. The 30-share index opened higher at 81,501.06, climbing from its previous closing of 81,306.85, and reached an intraday high of 81,799.06 before consolidating.
Similarly, the Nifty 50 closed at 24,967.75, up by 97.65 points or 0.39%.
According to Vinod Nair, Head of Research at Geojit Investments, the "wave of optimism" in the domestic market was a direct result of the anticipated Fed rate cut in September and the subsequent drop in the US 10-year yield. The IT sector was the primary beneficiary of this positive global sentiment, outperforming other sectors with a gain of 2.37%.
Top gainers in the Sensex included Infosys, TCS, HCL Tech, Tech Mahindra, Sun Pharma, and Bajaj Finance. On the other hand, BEL, Asian Paints, and Bharti Airtel were among the few to close in the red.
Sectoral indices saw mixed results, with Nifty Financial Services and Nifty Bank ending flat. Nifty Auto, however, posted a modest gain of 0.37%. Broader market indices, including Nifty Next 50, Nifty 100, and Nifty Midcap 100, also closed in positive territory.
Meanwhile, the Indian Rupee experienced a minor decline, trading 0.07 points lower at 87.58 against the US dollar. Jateen Trivedi of LKP Securities attributed this to a slight rebound in the dollar index and persistent outflows by Foreign Institutional Investors (FIIs). He noted that future market direction would depend on Federal Reserve Chairman Powell's policy stance, global crude oil trends, and FII investment flows.
[Except for the headline, this article has not been edited by the Benefit News editorial team and is published directly from the IANS news feed.]

Indian stock market indices close higher, driven by expectations of a US Fed rate cut

Dalal Street Rises on Fed Rate Hopes

Indian stock market indices close higher, driven by expectations of a US Fed rate cut

August 25, 2025 | 21:52 IST