India’s equity benchmarks are set to open higher on Thursday after three consecutive sessions of losses. This positive outlook follows the U.S. Federal Reserve’s expected 25-basis-point rate cut, which may mitigate foreign outflows from domestic stocks.
As of 7:22 a.m. IST, the GIFT Nifty futures were trading at 25,960 points, suggesting that the benchmark Nifty 50 will open above Wednesday’s close of 25,758. Other Asian markets also showed gains, rising by 0.4%. Wall Street equities advanced overnight after the Fed’s decision.
Fed Chair Jerome Powell did not provide definitive guidance on potential future rate cuts. However, his comments about the substantial downside risks to the labor market and the Fed’s reluctance to hinder job creation offered some optimism to investors.
Low interest rates in the U.S. increase the appeal of emerging markets like India to foreign investors. In the last three sessions, both the Nifty and Sensex indices declined by approximately 1.6%, impacted by ongoing foreign outflows and uncertainty surrounding a trade agreement with the United States.
Foreign portfolio investors (FPIs) have withdrawn $1.56 billion from domestic equities so far in December, nearly quadrupling the $425 million outflows reported in November. Analysts predict that 2025 may witness the largest ever divestment from Indian equities by FPIs, estimated at around $18 billion as of Wednesday.
While the recent Fed rate cut could catalyze a short-term recovery in domestic markets, sustained growth will likely hinge on the earnings reports for the December quarter and the outcome of ongoing negotiations for a favorable India-U.S. trade deal, according to two analysts.
Stocks to Watch:
- Tata Steel has approved the acquisition of a 50% stake in Thriveni Pellets for ₹6.36 billion ($70.78 million) and signed a deal with Lloyd Metals and Energy to explore opportunities in iron ore mining and logistics.
- The Life Insurance Corporation of India has received a tax demand order totaling ₹23.7 billion from the Mumbai tax authority.
- IndiGo, India’s largest airline, has revised its December-quarter capacity and passenger unit revenue forecast following widespread flight cancellations.
- Mazagon Dock has entered into an agreement with the Indian Navy and the Brazilian Navy to share information regarding the maintenance of Scorpene-class submarines.
Published on December 11, 2025.
