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This is the first rate cut by the US Federal Reserve since early 2020. The move shows that the focus of the Fed has now shifted from fighting inflation to supporting economic growth, analysts said.

Indian stock market indices, Sensex and Nifty 50, are likely to open higher after the US Federal Reserve’s outsized interest rate cut improved investor sentiment.The trends on Gift Nifty also indicate a positive start for the Indian benchmark index.

Indian benchmark indices Nifty 50 and Sensex ended the previous trade session in the red after hitting fresh record highs. Nifty 50 ended at 25,377.55, while Sensex ended at 82,948.23. Overnight, the US Federal Reserve cut its benchmark interest rate by 50 bps,

Will the Bulls be receptive to the Federal Reserve's decision to lower interest rates? The Sensex and Nifty indicate a slow start at Market Cafe. Jerome Powell, the chairman of the Federal Reserve, clarifies that the recent rate cut does not establish a precedent.

The Benchmark Indices on Wednesday after scaling new highs, however corrected to end with 0.16% decline ahead of FOMC meeting outcome. Analysts say markets will react on Thursday to the quantum of rate cuts as will take cues from the Fed commentary on further rate cuts.