Sept 18 (Reuters) - India's equity benchmarks are

expected to open higher on Thursday after the U.S. Federal

Reserve cut interest rates by a quarter point in a bid to halt

any slide in the labour market in the world's largest economy.

Gift Nifty futures were trading at 25,520.5 points

as of 08:10 a.m. IST, indicating that the benchmark Nifty 50

will open above the two-month high of 25,330.25 hit on

Wednesday.

The Fed on Wednesday lowered rates for the first time this

year to address the weakness emerging in the labour market.

However, Fed Chair Jerome Powell tempered the more

aggressive easing expectations in markets, saying Wednesday's

move was a risk-management cut and that the central bank does

not need to move quickly on rates.

Lower U.S. interest rates make emerging markets like India

attractive to foreign portfolio investors (FPIs), as Treasury

yields and the dollar typically decline in such a scenario.

The prospects of stronger FPI flows, coupled with consistent

support from domestic institutional investors, strengthen the

case for continued market upside, said Ponmudi R, chief

executive officer of Enrich Money.

India's blue-chip 50-stock index has risen in ten of the

last eleven sessions, and is 3.6% off its lifetime high hit in

September last year.

The gains have been driven by multiple factors, including

recent domestic tax cuts, expectations of a U.S. rate cut and

improving sentiment around trade negotiations with Washington.

"Fed rate cuts and lower inflation due to GST cuts increase

the odds of an RBI rate cut in October 2025," said Deepak

Agrawal, chief investment officer - debt at Kotak Mahindra AMC.

STOCKS TO WATCH

** Electronics manufacturing services company Dixon

Technologies (India) enters binding term sheet to

acquire 51% stake in camera and fingerprint modules maker

Kunshan Q Tech Microelectronics (India) for 5.5 billion rupees

** Consumer goods maker Marico confirms income tax

department visited some of its offices and manufacturing units,

and says proceedings are underway