Thu Sep 19 08:01:35 UTC 2024: ## Indian Stock Market Shows Mixed Response Following Fed Rate Cut
**MUMBAI, INDIA** – The Indian stock market reacted with mixed signals on Thursday afternoon following the US Federal Reserve’s decision to cut interest rates by 50 basis points. While the benchmark Sensex and Nifty 50 indices saw moderate gains, broader market indices faced selling pressure.
The Sensex rose 0.32 percent to 83,211.06, while the Nifty 50 gained 0.21 percent to 25,429.70. However, the Nifty Next 50 and Nifty Midcap Select indices fell by 1.45 percent and 1.28 percent respectively.
Market experts attributed the mixed response to concerns about a slowing economy despite the Fed’s rate cut. While Fed Chair Jerome Powell reassured investors that an economic downturn wasn’t imminent, concerns linger.
Shrey Jain, Founder and CEO of SAS Online, suggested that the Nifty 50 could trade sideways for now, and fresh long positions could be considered only if it surpasses today’s high. He also predicted continued outperformance of the Bank Nifty, targeting the 53,000 level.
Pranay Aggarwal, CEO of Stoxkart, added that the large rate cut by the Fed might lead to increased volatility in the market.
Despite the mixed signals, Jain remains positive on short- and medium-term bonds, and sees the rate cut as positive for flows into risky assets like Indian equities. He advised investors to take profits in IT stocks and consider stock-specific trades in FMCG, sugar, and metal sectors.
Both analysts emphasized the importance of adhering to risk management strategies and stop-loss levels in light of the anticipated market volatility in the coming days.
First Piper 