September 11, 2025 | Oracle’s AI Surge, Fed Rate Signals, and IPO Momentum

Morning Market Brief

Wednesday, September 11, 2025

After Wall Street’s record-breaking session overnight, Indian markets are positioned for a cautious start, with GIFT Nifty indicating modest gains. Optimism around easing US inflation and Oracle’s AI-driven rally has set a constructive tone, although geopolitical tensions following Israel’s strikes in Qatar have added a risk premium to oil markets.

Asian markets opened mixed. Japan’s Nikkei 225 touched a fresh record high on the back of a technology-led rally, while Hong Kong futures pointed to a weaker opening.

Key Watch Factors

Fed rate cut expectations are firming up ahead of next week’s FOMC meeting after US PPI data showed unexpected softness. Domestically, IT sector momentum remains strong on hopes of sustained US demand, while rupee stability near the 88.12 level continues to be closely monitored.

Tech Pulse

Oracle’s AI Momentum Accelerates

Oracle shares surged nearly 30% after the company reported a staggering 1,529% growth in multicloud database revenue from Amazon, Google, and Microsoft. The company also secured four multi-billion-dollar agreements in Q1, highlighting unprecedented demand for cloud and AI infrastructure.

Semiconductor Rally Strengthens

Taiwan Semiconductor Manufacturing Company posted record August sales of $11.09 billion, up 33.8% year-on-year. The numbers fueled gains across global chipmakers, with Nvidia rising 1.92% and AMD advancing 3.2% in pre-market trading, reinforcing confidence in sustained AI infrastructure spending by hyperscalers.

Global EV Technology Shift

In a notable shift, legacy automakers such as Audi are increasingly turning to Chinese electric vehicle technology to remain competitive. This reflects a broader transformation in global automotive design and supply chains.

Actionable Trigger

Watch Indian IT stocks at the open, particularly cloud-focused names, as Oracle’s guidance reinforces the sector’s US exposure and demand thesis.

Funding Radar

Early-Stage Venture Activity

AJVC closed its maiden fund at $23 million, targeting early-stage investments and reflecting continued institutional interest in India’s startup ecosystem. This comes during a challenging Q2 2025, when total VC investments fell to $3.33 billion across 299 deals.

IPO Pipeline Gathers Strength

Urban Company’s IPO opens today, potentially delivering up to 29x returns for early investors such as Accel and Tiger Global. The home services platform aims to raise ₹1,900 crore, with the issue open from September 10 to September 12, marking a significant milestone for India’s gig economy.

Sectoral Impact

Financial services led Q2 funding activity with $748.6 million raised, while Bengaluru retained its dominance, accounting for 44% of total startup capital raised nationwide.

Market Movers and Watchlist

IT Stocks Lead

Tuesday’s session saw IT stocks gain approximately 2%, driven by optimism around US trade, Oracle’s AI outlook, and expectations of Fed rate cuts. Sector sentiment remains constructive amid prospects of dollar weakness.

Tata Motors’ Mega Acquisition

Tata Motors secured a €3.875 billion bridge loan for its acquisition of Iveco, marking one of Asia’s largest transactions in 2025 and underscoring India Inc.’s expanding global ambitions.

Watch Levels

• Nifty 50: Support at 24,900; resistance at 25,100
• Bank Nifty: Sustaining above 54,500 remains critical for continued momentum

Quick Bytes (Global and Off-Radar)

Japan’s Nikkei scaled record highs at 44,251.65 as SoftBank surged nearly 10% on AI optimism. European markets closed mixed despite supportive US inflation data, with geopolitical tensions weighing on sentiment. The global eSIM market is projected to grow rapidly through 2030, potentially disrupting traditional roaming revenues for mobile operators.

In a move to ease foreign investment flows, SEBI has simplified norms for overseas investors dealing exclusively in Indian government bonds. The relaxed disclosure requirements will take effect from February 2026.

Deep Dive – Fed Rate Cut Momentum Builds

The Setup

US producer prices unexpectedly declined for the first time in four months, strengthening expectations of a 25 basis point Fed rate cut next week. This follows earlier weakness in US jobs data, reinforcing the case for monetary easing.

India Impact

A dovish Federal Reserve typically supports emerging market inflows and rupee stability. Historically, Indian IT and pharmaceutical sectors benefit the most from US rate cuts due to improved demand and favorable currency dynamics. Markets are currently pricing in approximately 75 basis points of rate cuts by year-end.

Investor Takeaway

Defensive sectors may outperform if global growth concerns intensify, while rate-sensitive financials could face margin pressure. Allocations toward export-oriented sectors appear prudent in the current environment.

What to Watch Today

• Domestic: IT sector commentary, rupee movement around the 88.15 level
• Global: US CPI data due Thursday
• Corporate: Urban Company IPO subscription trends, Tata Motors acquisition updates
• Geopolitical: Israel–Hamas developments, OPEC+ output decisions and crude impact
• Commodities: ANZ flags further upside potential in gold, with momentum intact despite stretched positioning

Quote of the Day

“We secured four multi-billion-dollar agreements with three distinct customers in Q1. This was an extraordinary quarter, and demand for Oracle Cloud Infrastructure continues to increase.”
— Safra Catz, CEO, Oracle

Chart of the Day

Overnight performance of major US indices highlights continued strength across equity markets amid easing inflation expectations.

Compliance and Disclaimer

This newsletter is for informational purposes only and should not be construed as investment advice. Past performance does not guarantee future results. Readers should consult a qualified financial advisor before making investment decisions. Oorjita FinAI Services does not guarantee the accuracy of market data and is not liable for any investment losses.

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