Indian Stocks Rebound on US Fed Rate Cut Boost; Sensex Gains Over 140 Points
In a welcome shift, Indian stock markets snapped their three-day losing streak and opened higher on Thursday, December 11, 2025, riding a wave of global optimism after the US Federal Reserve’s decision to cut interest rates.
The key trigger was the US Federal Reserve's 0.25% (25 basis points) reduction in the federal funds rate. Comments from Fed Chair Jerome Powell led to a softening of the US dollar. This, in turn, made dollar-priced commodities like metals cheaper for investors holding other currencies, giving a direct lift to metal stocks in India.
Reflecting this positive sentiment, the Sensex advanced 141.25 points to open at 84,532.52. Similarly, the Nifty was up 43.25 points at 25,801.25.
Asian Markets Show Mixed Signals
While Indian markets cheered the Fed move, Asian counterparts presented a mixed picture in early trade. Japan’s Nikkei and South Korea’s KOSPI were down by 0.58% and 0.63%, respectively. Hong Kong’s Hang Seng managed minor gains, while China’s Shanghai Composite was in the red.
The positive global cue, however, came from Wall Street. On December 10, the US markets closed firmly higher, with the Dow Jones surging 1.05%, while the Nasdaq and S&P 500 also ended in positive territory.
Spotlight on ICICI Prudential Asset Management IPO
In major domestic news, the ICICI Prudential Asset Management Company’s Initial Public Offering (IPO) will open for subscription on Friday, December 12. The ₹10,600 crore offer, which is entirely an offer for sale, will remain open for retail investors until December 16, drawing significant market attention.
FII Selling Continues; DIIs Provide Strong Support
Despite the upbeat opening, underlying data shows foreign institutional investors (FIIs) continued their selling spree. On December 10 alone, they offloaded shares worth ₹1,674 crore in the cash segment. So far in December, FIIs have sold a substantial ₹16,470 crore worth of equities.
However, the market has found a sturdy cushion in domestic institutional investors (DIIs). On Wednesday, DIIs bought shares worth ₹3,498 crore. Their cumulative buying for December stands at a robust ₹32,305 crore, echoing a strong trend from November where they counterbalanced FII selling with purchases worth over ₹77,000 crore.
This persistent support from domestic funds is helping Indian benchmarks weather the outflow from foreign investors.
Wednesday had seen a downturn, with the Sensex closing 275 points lower and the Nifty falling by 82 points. Today’s recovery, fueled by the global rate cut boost, marks a cautious but positive step for the markets as investors eye the upcoming IPO and global developments.
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