Sensex Down 0.29%, Nifty Falls 0.27% After US Fed’s 25 bps Rate Cut

Market Update at 10:30 AM: India’s equity benchmarks edged lower on Thursday after the U.S. Federal Reserve cut its key interest rate by 25 basis points as expected but signalled that it could be the last reduction of 2025. Investors also awaited updates from the ongoing U.S.-China trade talks.

At 9:15 a.m. IST, the Nifty 50 declined 0.27 per cent to 25,984.4, while the BSE Sensex slipped 0.29 per cent to 84,750.9. Both indices had gained around 0.5 per cent in the previous session, ending less than 1 per cent below their record highs from September 2024.

The U.S. Fed’s rate decision came amid limited availability of official data due to the ongoing federal government shutdown. Fed Chair Jerome Powell indicated that further cuts this year were unlikely unless economic data warranted it.

In sectoral trends, 10 of the 16 major sectors opened lower, while Small-Cap and Mid-Cap indices each rose 0.2 per cent. Among individual stocks, Dr Reddy’s Laboratories fell 4.5 per cent, emerging as the top Nifty loser after receiving a non-compliance notice from Canada’s Pharmaceutical Drugs Directorate for its Semaglutide injection, used for diabetes and weight management.

Pre-Market Update at 7:40 AM: Equity benchmark indices — Sensex and Nifty 50 — are likely to open higher on Thursday, October 30, despite losses in global markets after the US Federal Reserve policy outcome. Investors will also monitor the meeting between US President Donald Trump and Chinese President Xi Jinping scheduled for later today.

Trends on the GIFT Nifty indicated a positive start, as it traded 26 points higher at 26,160 around 7:16 AM. The Federal Reserve, chaired by Jerome Powell, announced a 25 basis point rate cut in its October FOMC meeting, lowering the benchmark interest rate to 3.75–4.00 per cent. Powell said that further rate cuts are not guaranteed, noting that economic conditions may evolve differently than expected.

In early trade, Asian markets were lower, while US markets ended mixed on Wednesday. The Nasdaq closed at a record high, supported by Nvidia’s sharp rally after becoming the first company to reach a USD 5 trillion market capitalisation.

On Wednesday, October 29, Foreign Institutional Investors (FIIs) sold equities worth Rs 2,540.16 crore, while Domestic Institutional Investors (DIIs) continued their buying streak, purchasing shares worth Rs 5,692.81 crore for the fifth consecutive session of net inflows.

Indian markets closed higher ahead of the Fed’s policy announcement. The Nifty 50 rose 117.70 points, or 0.45 per cent, to 26,053.90, and the Sensex gained 368.98 points, or 0.44 per cent, to close at 84,997.13. India VIX remained steady near 12. Ten of eleven sectoral indices ended in positive territory, led by Nifty Energy, up nearly 2 per cent, followed by Nifty Metal, which rose 1.7 per cent.

In the US, the Dow Jones Industrial Average fell 74.37 points, or 0.16 per cent, to 47,632.00, while the S&P 500 remained almost flat, slipping 0.30 points to 6,890.59. The Nasdaq gained 130.98 points, or 0.55 per cent, closing at 23,958.47. Powell highlighted that policymakers were cautious about further easing due to the ongoing US government shutdown.

The dollar index climbed to a two-week high of 99.131. Gold prices rose in early Asian trade, with spot gold up 0.5 per cent at USD 3,949.47 per ounce, while MCX gold futures closed 0.85 per cent higher at Rs 1,20,666 per 10 grams. Crude oil prices softened, with WTI futures at USD 60.3 per barrel and Brent futures at USD 64.8 per barrel, as investors awaited updates on the US-China trade talks.

For today, Samaan Capital will remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.