US Fed Cuts Rates by 25 bps-What It Means for Markets, Investors

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The EU is making a bold play to lessen its dependency on the U.S. and India is at the center of it. European Commission President Ursula von der Leyen confirmed plans to strike a trade deal with India this year, following assurances from PM Modi. Talks are also underway with South Africa, Malaysia, and the UAE, signaling a global diversification push that could reshape trade dynamics.

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IMPACT NEWS

US Fed Cuts Rates by 25 bps: What It Means for Markets and Investors

The U.S. Federal Reserve, led by Chair Jerome Powell, has delivered its first interest rate cut in years, slashing the benchmark rate by 25 basis points. This decision marks a significant pivot after an extended cycle of pandemic-era hikes designed to cool inflation.

For markets, the move brings relief and optimism. Wall Street reacted positively, with equities edging higher on hopes that cheaper borrowing costs will stimulate corporate growth and consumer demand. However, Powell’s tone remained cautious - he stressed that while inflation has eased from its peak, the central bank is not declaring victory just yet.

For global investors, including those in emerging markets like India, the cut could trigger increased foreign inflows as liquidity loosens in the U.S. Lower U.S. yields often push investors toward higher-growth markets, potentially supporting the rupee and boosting equities.

MARKETS

Sensex surged 320 points to 83,013 and Nifty gained 93 points to 25,423 as IT and Pharma stocks rallied after the US Fed’s 25 bps rate cut boosted global liquidity sentiment. A weaker rupee near ₹88/USD aided exporters, while bullish technicals and domestic reforms like GST tweaks added momentum, keeping markets on an uptrend.
_{Closing figures as on 18.09.25 (3.30pm IST)}

🔎 In Focus

Stock Performance:

Top Gainers

✅ LIC Housing Finance (₹593.20, +3.71%): Housing financiers surged as the US Fed’s 25 bps rate cut improved liquidity sentiment and lowered borrowing cost expectations.

✅ HFCL (₹77.64, +3.35%): HFCL gained momentum on the back of positive buzz around its telecom and defence contracts. Heavy volumes highlighted strong retail and institutional interest in the stock.

✅ Glenmark Pharma (₹2,108.40, +3.23%): Pharma stocks outperformed, with Glenmark rallying on pipeline strength and trial updates. A sharp pickup in trading volumes added fuel to the upward move.

✅ Laurus Labs (₹923.25, +3.28%): Laurus Labs extended gains, nearing 52-week highs, backed by its Q1 profit surge (1100% YoY) and strong demand in the CDMO segment.

Top Losers

🔻 Page Industries (₹44,265, -2.40%): Shares slipped after HSBC downgraded the stock, citing near-term demand risks. The downgrade triggered selling pressure despite strong long-term fundamentals.

🔻 Kalyan Jewellers (₹515.00, -1.49%): Jewellery stocks faced profit-booking as gold prices softened intraday post the Fed decision. Kalyan slid slightly, tracking the commodity move.

🔻 Coal India (₹393.15, -1.65%): Coal India declined as commodity-linked PSUs saw mild selling despite firm seaborne coal prices. The stock closed lower on intraday pressure.

🔻 Tata Chemicals (₹989.25, -1.58%): The stock drifted lower in a quiet trading session with no major news trigger. Broader market rotation into IT and Pharma kept chemicals out of focus.

INDIA FRONTIER

Everything else you need to know today

🚨 Clampdown: India’s IT Ministry (MeitY) ordered the removal of over 3,000 apps from Google Play Store during April–May 2025, citing national security concerns amid rising border tensions with Pakistan. The takedowns spanned categories from fintech to gaming, underscoring how geopolitics is increasingly shaping digital ecosystems.

🚗 Exit: China’s SAIC Motor is set to slash its 49% stake in JSW MG Motor India and freeze new investments, a clear sign of political tensions spilling into business. The $1.2B venture, once seen as a gateway for Chinese automakers, has struggled under India’s investment curbs.

💸 Slash: Maruti Suzuki just rolled out price cuts of up to ₹1.29 lakh across its lineup, passing on the benefits of India’s GST rate reduction. From Alto K10s to Brezzas, nearly every segment is cheaper starting September 22 right in time for the festive season.

🛍️ Shift: Gen Z and Millennials, armed with a whopping $250 billion in spending power, are reshaping India’s retail leasing market. Malls and developers are pivoting toward experience-driven spaces - from gaming arenas to lifestyle hubs - tailored for younger consumers.

SPECIAL

Aditya Birla Capital Rockets 72% in 6 Months - Analysts See More Fuel Ahead

Aditya Birla Capital (ABCL) has been on a meteoric rise, delivering a staggering 72% return over the past six months. Now, Motilal Oswal believes the rally isn’t done yet - projecting nearly 20% more upside with a target price of ₹340 per share.

The optimism stems from ABCL’s robust performance across its diversified portfolio, spanning NBFCs, housing finance, asset management, and insurance. Its “One ABC” strategy has been a game-changer, enabling stronger cross-selling, higher customer wallet share, and improved cost efficiencies. The company’s push toward digital transformation and wider distribution reach is further positioning it for long-term growth.

Importantly, while concerns around MSME lending have rattled some peers, ABCL appears better cushioned. Nearly half of its MSME book is secured, and just 1.3% falls under small-ticket unsecured loans - a segment most exposed to stress. Analysts note that this portfolio mix, coupled with stable credit quality, gives the company a stronger footing.

THE HANOOMAAN INSTITUTE

💡 7 Signs of Quiet Wealth

True wealth often whispers instead of shouting. Unlike flashy displays of cars, designer labels, or extravagant vacations, secretly wealthy individuals show their success in subtle, disciplined ways.

1. They live below their means. Quiet wealth is built on restraint, not reckless spending. You’ll rarely see them chasing “status” purchases.

2. Time is their ultimate luxury. They outsource low-value tasks and focus on work, family, or passions.

3. They invest consistently. Rather than betting big, they compound patiently - stocks, real estate, businesses.

4. No financial anxiety. Wealth gives them calm confidence; bills or emergencies don’t shake them.

5. Relationships over possessions. They value networks, mentorship, and meaningful connections more than material items.

6. They’re generous. From quiet philanthropy to helping friends, wealth allows them to give without expectation.

7. Continuous learners. Books, courses, or coaches - wealthy people keep sharpening their edge.

The lesson? Real wealth isn’t about looking rich - it’s about being free. Freedom of time, choice, and peace of mind.

👉 Ask yourself: Are you chasing symbols of wealth, or quietly building the habits that create it?

SUPERCHARGE YOUR INVESTING SKILLS

STOCK SCREENER TO UP YOUR GAME

Breakout stocks
by - Saravanan

Dividend yield > 2 AND
Dividend Payout < 100% AND
(Profit growth 3Years > 10 OR
Profit growth 5Years > 10 OR
Profit growth 7Years > 10 ) AND
Average 5years dividend > 0 AND
Dividend last year > Average 5years dividend AND
Profit after tax > Net Profit last year * .8 AND
Dividend last year > .35

Thanks for reading.

Until tomorrow!

Hanoomaan India Business team

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