Indian Equities Slip As Fed’s Policy Outlook Dampens Global Mood

Indian stock markets ended Thursday’s session with steep losses, following a global sell-off sparked by the US Federal Reserve’s latest policy move.

The Fed reduced interest rates as widely anticipated. However, it signalled that the latest move might mark the end of rate reductions for 2025. The announcement unsettled investors worldwide.

Caution also prevailed in the domestic market as traders awaited new developments from the ongoing US–China trade discussions.

The Sensex tumbled 592.67 points (0.7%) to finish at 84,404.46, while the Nifty 50 shed 176.05 points (0.68%) to close at 25,877.85.

Market specialists noted, “The Nifty struggled to hold higher levels, with persistent selling dragging it lower. On the technical front, the Nifty has formed an immediate support zone near 25,800, while resistance is capped around 26,000.”

Within the Sensex pack, Larsen & Toubro (L&T) emerged as the day’s top performer, rising 0.91%. Other notable gainers included BEL, Maruti Suzuki, Adani Ports, and Titan.

Conversely, Bharti Airtel, Power Grid, Tech Mahindra, Infosys, and Bajaj Finance led the declines, each losing more than 1%.

Across the broader market, the Nifty MidCap 100 inched down 0.09%. The Nifty SmallCap 100 slipped 0.1%. This reflected mixed trends among mid- and small-cap shares.

Most sectoral indices finished in negative territory, except for Nifty Energy, which managed modest gains.

The Nifty Financial Services index fell 0.7%, while IT, Auto, Metal, Pharma, Bank, and Oil & Gas sectors also ended lower.

“As expected, the US Fed cut interest rates by 25 bps. However, the market consolidated after Powell indicated that this might be the last rate cut of 2025, tempering hopes of further monetary easing,” analysts observed.

They noted that the appreciation of the US dollar had fuelled a risk-averse mood across emerging markets, India among them.

Experts further mentioned, “Meanwhile, investors remain watchful of the Trump–Xi trade negotiations, as the prevailing uncertainty around the discussions continues to keep market sentiment cautious.”

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