The baton handover from the US was decidedly bullish, albeit selective. The US Federal Reserve delivered its third consecutive interest rate cut, lowering the key funds rate to a range of three-point-five to three-point-seven-five percent. Crucially, Fed Chair Jerome Powell provided distinctly dovish commentary, effectively ruling out any imminent rate hikes. This commitment to lower rates structurally favors risk assets globally, including Indian equities, by lowering the US ten-year Treasury yield to approximately four-point-one percent. The US Dollar Index also slipped, hitting its lowest level since October.
This dovish signal drove the Dow Jones Industrial Average and the S&P five hundred to new closing records, surging one-point-three percent and zero-point-two percent respectively, showing a clear rotation into non-technology blue-chip companies. However, the Nasdaq Composite lagged, dropping zero-point-three percent. This split was triggered by Oracle, which plummeted nearly eleven percent after reporting higher capital spending but softer revenue than expected. This is critical: institutional money is demanding execution and efficiency, not just AI narrative, a trend that warrants scrutiny for our own IT pack.
Our market resilience remains anchored by Domestic Institutional Investors. On Thursday, FIIs booked profits, registering net selling two thousand Crore rupees. But DIIs aggressively stepped in, injecting a massive three thousand seven hundred Crore rupees. This continuous, structurally sticky DII inflow acts as the primary stabilizing force, absorbing foreign selling pressure and providing a strong technical floor for the Nifty.
Listen closely for actionable intelligence on two key sectors.
First, the Metal and Mining space needs your attention. Hindustan Zinc is a direct beneficiary of the unprecedented silver rally. Global spot silver has surged recently, crossing sixty three US dollars an ounce. The primary driver is silver's reclassification as a US critical mineral, elevating it to a strategic industrial commodity essential for solar and electronics. This structural re-rating fuelled strong buying in Hindustan Zinc, one of the world's largest integrated silver producers, whose shares jumped nearly five percent. This theme suggests long-term demand growth for select producers.
Second, Automobile and related exports face an immediate, sharp headwind. Mexico, a major export destination for India's manufactured goods and vehicles, has approved significant tariff hikes of up to fifty percent on certain Indian imports. This move directly impacts major Indian car exporters, dealing a serious blow to up to one billion dollars worth of shipments. Automobile export companies that rely heavily on Mexico, our third-largest car export market, must now re-evaluate strategies immediately.
On commodities, crude oil prices are still weakening, despite geopolitical noise, which is a big macro positive for India. WTI Crude is trading around fifty-seven point nine-six dollars per barrel, near multi-week lows, primarily due to global surplus expectations. This structural weakness is a massive tailwind for India's current account deficit and helps mitigate imported inflation. Meanwhile, Bitcoin, a proxy for global risk appetite, climbed toward ninety-four thousand dollars following the Fed cut, although it later handed back some gains. Standard Chartered still maintains a bullish outlook, projecting Bitcoin could reach one hundred thousand dollars by the year end.
Final thought for today: Leverage the domestic dominance. The market is enjoying a dual tailwind—global liquidity expansion and favorable crude prices. Use the expected Gift Nifty gap-up to focus on domestic cyclicals and financials, sectors positively anchored by the strong HDFC Bank ADR close. But hedge against the tactical risk presented by the Mexico tariff bombshell. Identify exporters facing those fifty percent duties and approach them with caution.