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Below the Quote on Morning Market Views 18th September 2025 by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

"The Fed chief Jerome Powell described the 25 bp rate cut as “risk management cut”. The focus of the Fed commentary is the uncertainty surrounding economic activity, unemployment and inflation. Since the labour market is cooling and the GDP growth projection for 2025 is only 1.6%, perhaps two more cuts are possible this year even though the Fed chief categorically stated that “ the policy is not on preset path.” The softening interest rate scenario is favourable for the market to remain bullish. 

Indian stock market is unlikely to be impacted by the Fed decision. The ongoing rally in the market is driven by expectations of earnings revival and a positive outcome from the India-US trade negotiations. 

Bank Nifty is resilient and the fair valuations of banking stocks may attract more investment, particularly institutional, into this segment."

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