Indian stock markets extended their losing streak on Thursday as global sentiment turned cautious following the latest US Federal Reserve announcement. The benchmark indices — the BSE Sensex and NSE Nifty 50 — closed notably lower after the Fed not only delivered an expected rate cut but also hinted that this move could be the final reduction for the year. This commentary dampened hopes of further monetary easing and weighed heavily on investor confidence across global markets.
At the domestic level, traders also remained cautious ahead of critical developments in the ongoing US-China trade negotiations, which continue to influence foreign capital flows and risk appetite in emerging markets. With multiple global uncertainties in play, Indian equities mirrored the broader weakness.
Benchmarks End Lower as Selling Pressure Dominates
The Sensex Nifty slip amid weak global market cues theme played out throughout the session as both key indices struggled to maintain higher levels.
- The BSE Sensex fell 592.67 points, or 0.7%, closing at 84,404.46.
- The Nifty 50 declined 176.05 points, or 0.68%, to finish at 25,877.85.
Analysts noted that the Nifty was unable to sustain any recovery attempt due to steady selling pressure across sectors. The index faced a clear hurdle near the 26,000 mark, while immediate support was identified around 25,800, which helped prevent a deeper fall. Market experts said traders preferred to stay on the sidelines given the global uncertainty and tightening liquidity conditions.
Mixed Performance Among Heavyweight Stocks
Sectoral and stock-specific action showed a scattered trend, with only a few large-cap names managing to stay resilient in an otherwise weak market.
Top Gainers
Engineering major Larsen & Toubro (L&T) emerged as the top performer on the Sensex, rising 0.91%. Analysts attributed the strength to strong project order flows and continued optimism in the domestic infrastructure segment.
Other gainers included:
- BEL
- Maruti Suzuki
- Adani Ports
- Titan
These stocks saw selective buying interest, supported by company-specific outlooks and defensive positioning by investors.
Top Laggards
On the negative side, several heavyweight stocks dragged the indices lower.
Key losers included:
- Bharti Airtel
- Power Grid
- Tech Mahindra
- Infosys
- Bajaj Finance
Each of these stocks fell over 1%, reflecting broader concerns around global IT demand, higher US dollar strength, and a shift in investor preference toward safer assets.
Broader Market Shows Mild Weakness
The weakness was not limited to frontline indices.
In the broader market:
- The Nifty MidCap 100 slipped 0.09%
- The Nifty SmallCap 100 declined 0.1%
Market watchers said investors are avoiding aggressive buying in mid-cap and small-cap space due to rising volatility and stretched valuations after months of outperformance. The mild decline in these indices indicates cautious profit booking rather than panic selling.
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Sectoral Indices Mostly in Red
Barring a few exceptions, most sectoral indices closed in the red.
The only notable outperformer was Nifty Energy, which managed to stay in positive territory. Analysts believe stable crude oil prices and improved earnings visibility supported energy stocks.
Key sectoral declines:
- Nifty Financial Services: Down 0.7%
- Nifty IT: Affected by US commentary and stronger dollar
- Nifty Auto: Marginal weakness after recent rallies
- Nifty Metal: Impacted by global slowdown concerns
- Nifty Pharma: Saw minor selling
- Nifty Bank: Slipped due to profit booking in private banks
- Oil & Gas: Slight pressure due to international price movements
Overall, the sectoral performance reflected broad-based uncertainty rather than sector-specific negative triggers.
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Fed Rate Cut Fails to Lift Markets
The US Federal Reserve cut its key interest rate by 25 basis points, a move that was widely expected by global investors. However, what weighed on market sentiment was Fed Chair Jerome Powell’s statement indicating that this might be the last rate cut of 2025.
For investors hoping for a more accommodative policy stance, the announcement came as a disappointment. Analysts explained that the reduced likelihood of further rate cuts could keep global liquidity tight, especially for emerging economies like India that depend strongly on foreign institutional investments.
Additionally, the US dollar strengthened following the Fed’s outlook. A stronger dollar typically leads to a risk-off environment, prompting foreign investors to move away from emerging market equities and into safer US assets. This triggered further pressure on Indian stocks.
Also read: What is a Tariff? Understanding Its Role in Global Trade
Outlook: Volatility Likely to Persist
With the Sensex Nifty slip amid weak global market cues, analysts anticipate that Indian markets may remain volatile in the near term.
Key factors to watch include:
- Upcoming updates on US-China trade talks
- Global inflation trends
- US economic data and dollar movement
- Domestic corporate earnings
- Foreign fund inflows and crude oil prices
Market experts advise traders and long-term investors to remain selective and avoid aggressive positions until global cues stabilise.
