The benchmark indices fell up to 0.70% on Thursday, weighed down by the US Federal Reserve’s comments ruling out a rate cut in its next policy announcement in December, amid mixed global cues. The Sensex slumped 592.67 points, or 0.70%, to close at 84,404.46, while the Nifty declined 176.05 points, or 0.68%, to 25,877.85.
“A further reduction in the policy rate at our December meeting is not a foregone conclusion — far from it. Policy is not on a preset course,” Federal Reserve Chairman Jerome Powell said at a press conference after policymakers delivered a widely expected quarter-point rate reduction on Wednesday.
Foreign portfolio investors net sold shares worth Rs 3,077.59 crore and domestic institutional investors bought shares worth Rs 2,469.34 crore, as per provisional data by the BSE.
Vinod Nair, head of research, Geojit Investments, said: “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. The resulting strength in the US dollar contributed to a risk-off sentiment across emerging markets, including India.”
Domestically, mixed Q2 earnings and F&O expiry led to market volatility. “Meanwhile, investors remain watchful of the Trump–Xi trade negotiations, as uncertainty surrounding the discussions continues to keep market sentiment cautious,” Nair added.
“The near-term trend of the Nifty remains positive, though the short-term outlook suggests a phase of profit booking. There is a possibility of the Nifty finding support around 25,800–25,700 levels in the next couple of sessions before bouncing back from the lows,” said Nagaraj Shetti, senior technical research analyst at HDFC Securities.
The broader indices, BSE Midcap and BSE Smallcap, ended flat. Investors’ wealth eroded by ₹1.92 lakh crore, bringing the BSE’s total market capitalisation down to ₹472.37 lakh crore.
Telecom was the top sectoral laggard with a 2.52% decline, followed by Teck, banking, financial services, and IT, which fell up to 1.02%. Bharti Airtel, Power Grid, Tech Mahindra, Infosys, and Bajaj Finance were the top Sensex laggards, slipping up to 1.64%, while L&T, BEL, UltraTech Cement, Maruti Suzuki, and Adani Ports were the top gainers, rising up to 0.91%.
