Fed Rate Cut Lifts Indian Stocks, Attracts Foreign Investment

• US Federal Reserve cut interest rates by 0.25% on December 10th, bringing them to 3.5-3.75%, the lowest in three years.
• Following the Fed's decision, Indian stock markets (Sensex and Nifty) rallied on December 11th.
• Lower US interest rates are expected to reduce the attractiveness of US bonds, potentially drawing foreign investment to emerging markets like India.
• Increased foreign investment in India could provide support to the Indian Rupee, which has weakened against the dollar recently.
• Strong Indian economic fundamentals, including high growth, low inflation, and positive corporate earnings, are expected to attract foreign investors.

Why It Matters: US rate cut may attract foreign investment to India, boosting markets and strengthening the rupee.