New Delhi: The US Federal Reserve cut the policy interest rates by 50 basis points i.e. half a percent late on Wednesday night. Economic experts were expecting a 25 basis point cut. However, the US market did not react positively to this on Wednesday. After the rate cut decision, all three major US indexes - Dow Jones, Nasdaq Composite and S&P 500 - showed a slight rise after the rate cut. But, in the end, all three closed with a decline.

However, the US stock market has given its real reaction to the rate cut decision today, i.e. on Thursday. In the early trade, all three major indices saw a jump of 1 to 3 percent. By around 10:30 am on Thursday (8 pm Indian time), Nasdaq Composite was trading with a gain of 2.79 percent, S&P 500 with a gain of 1.85 percent and Dow Jones Industrial Average with a gain of 1.30 percent. This shows that investors have welcomed the rate cut strongly.

Will it be seen in the Indian stock market also?

Indian markets and investors are usually affected by the fluctuations of the US stock market. In such a situation, it is expected that the Indian stock market may see a rise on Friday. The Indian stock market could not maintain the initial rise on Thursday after the reduction in interest rates in the US. However, in the end it managed to close at a new record level.

The BSE benchmark Sensex rose 236.57 points to close at a new peak of 83,184. During the day, it rose 825.28 points to a high of 83,773.61. Similarly, the NSE Nifty rose 38.25 points to close at an all-time high of 25,415.80. During the day's trading, it reached a high of 25,611.95.