The US Fed rate cut effect: Foreign investors splurge on Indian shares on Day 2 | Stock Market News

Following a steeper-than-expected interest rate cut by the US Federal Reserve, foreign institutional investors (FIIs) significantly increased their investments in Indian markets. This surge in investment led to record highs for the Nifty 50 and Sensex indices, boosting investor wealth by $7 trillion. The rate cut is expected to result in higher capital flows into emerging markets like India. On the second day after the rate cut, FIIs net invested a provisional Rs 14,064.05 crore, driven by both passive and active buying. The FTSE All-World Index's semi-annual rebalancing also contributed to this investment surge. The financial services, automobile, oil and gas, FMCG, and telecom sectors led the gains. This influx of foreign investment underscores the positive impact of the US Fed's monetary policy on global markets, particularly in emerging economies.