Thursday's Market Quotes Turn Positive on Rate Cut Optimism

Indian equities are gearing up for a bullish Thursday session, riding on strong momentum from Wall Street and regional Asian strength. The catalyst? Growing conviction that the Federal Reserve will deliver an interest rate cut in December—a shift that’s already reshaping global market dynamics.

Corporate Action Steals the Spotlight

Three significant corporate developments are capturing investor attention today. Whirlpool is under the microscope after its promoter signals plans to offload a 7.5% stake through a block deal priced at Rs 1,030 per share. Separately, Oberoi Realty has locked in a major redevelopment agreement for prime real estate on Nepean Sea Road in Mumbai, signaling confidence in India’s high-value property market. Meanwhile, Salasar Techno Engineering has secured dual rail infrastructure contracts totaling approximately Rs 695 crore from Rail Vikas Nigam Ltd., underscoring steady demand in the transportation sector.

Wednesday’s Rally: Broad-Based Gains Across the Board

The previous day’s close painted an encouraging picture for Thursday. India’s Sensex surged 1,022.50 points—a 1.21% climb—to settle at 85,609.51, while the Nifty50 advanced 320.50 points or 1.24% to close at 26,205.30. This across-the-board strength was underpinned by multiple tailwinds: weak U.S. economic data that solidified Fed rate-cut bets, declining crude oil prices amid peace talk developments between Russia and Ukraine, and robust foreign institutional investor (FII) buying that reflected renewed confidence in Indian assets.

Global Markets Echo the Positive Tone

Wall Street’s overnight performance reinforced the bullish narrative. The Dow climbed 314.67 points (0.7%) to 47,427.12, the Nasdaq jumped 189.10 points (0.8%) to 23,214.69, and the S&P 500 gained 46.73 points (0.7%) to 6,812.61. The major indices are now notching their fourth consecutive positive close, steadily reclaiming ground toward record levels. Dovish commentary from Federal Reserve officials has been instrumental in sustaining this upward momentum.

Rate Cut Odds Surge to Record Levels

Perhaps the most striking development: CME Group’s FedWatch Tool now assigns an 82.9% probability to a quarter-point Fed rate cut in December, up dramatically from just 30.1% a week ago. This sharp reversal in expectations is reshaping asset allocation decisions globally and feeding into positive sentiment across emerging markets, including India.

What Could Slow the Rally?

Despite the optimistic setup, one factor bears watching: negotiations around a potential U.S.-India trade agreement. Any unexpected developments on this front could cap the market’s upside, so traders should monitor headlines closely as Thursday unfolds.