During US rate cut cycles, the Nifty 50 delivered an average return of 37%, outperforming the S&P 500, which returned 28%, showcasing the impact on equity markets.
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Here's a look at the impact of US Fed rate cuts on the Indian stock market:
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1995-97 Period
The US Fed cut rates by 0.75%, resulting in a 42% gain for S&P 500 and a 13% gain for Nifty 50.
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1998-99 Period
During this period, the US fed cut rates by 0.75%, resulting in 31% gain for both S&P 500 and Nifty 50, showing a strong market response.
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2001-04 period
During this period, the US Fed cut rates by 5.5%, leading to a 15% loss for the S&P 500 but a 17% gain for the Nifty 50.
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2007-15 Period
During this period, the US Fed cut rates by a substantial 5%, resulting in a 36% upside in the S&P 500 and a 70% gain in the Nifty 50.
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2019-22 Period
The US Fed implemented a 2.25% rate cut, and the S&P 500 increased by 46%, while Nifty 50 saw a 53% rise, demonstrating strong market growth.