Indian equity benchmarks reversed course and opened on a weak note on Thursday, tracking losses in global markets and cautious sentiment following the US Federal Reserve’s latest policy decision.
The BSE Sensex opened the session below 76,850, crashing a little over 650 points, while the NSE Nifty50 started trading near 23,950, tanking more than 200 points, as of 9:15 AM.
GIFT Nifty And Pre-Open Signal Heavy Sentiment
Early indicators suggest a soft opening for domestic markets, with GIFT Nifty trading lower at 24,162, down 89.50 points.
In the pre-open session around 9:03 AM, the Sensex slipped 239.01 points, or 0.31 per cent, to 77,257.35, while the Nifty declined 73.95 points, or 0.31 per cent, to 24,103.70.
The decline comes amid weakness in global equities and cautious investor positioning after the US Federal Reserve delivered a hawkish pause, signalling a more divided outlook on interest rates.
US Fed’s Hawkish Pause, Policy Split Jitters Markets
The US Federal Open Market Committee kept interest rates unchanged in the 3.5-3.75 per cent range, in line with expectations.
However, the 8-4 split among policymakers surprised markets, raising concerns about the future rate trajectory and indicating persistent inflation risks. This has weighed on global risk appetite and triggered caution across equities.
Asian Markets Track Wall Street Lower
Markets across Asia-Pacific followed the weak global trend, reflecting subdued sentiment.
Japan’s Nikkei 225 declined over 1 per cent, while Hong Kong’s Hang Seng also traded lower. South Korea’s Kospi was largely flat, indicating a mixed but cautious regional outlook.
Overnight, US markets ended on a subdued note, with the Dow Jones and S&P 500 closing lower, while the Nasdaq managed marginal gains.
Oil Prices Over $120, Gold, Silver See Strong Interest
Crude oil prices jumped sharply, adding to market concerns.
Brent crude moved above the critical $120 per barrel level after reports suggested that the US rejected Iran’s peace proposal and intensified its stance on the Strait of Hormuz blockade.
Elevated oil prices remain a key macro risk for India, given their impact on inflation, currency stability, and corporate profitability.
Precious metals saw strong buying interest, with gold and silver futures rising as investors sought safety amid geopolitical uncertainty and volatile markets.
Previous Session: Markets Rally On Earnings Boost
On Wednesday, domestic equities ended higher after a volatile session, supported by strong earnings and value buying.
The Sensex climbed 609.45 points, or 0.79 per cent, to close at 77,496.36, while the Nifty advanced 181.95 points, or 0.76 per cent, to settle at 24,177.65.
Despite the recovery, persistent foreign institutional investor (FII) selling and elevated crude oil prices continued to weigh on sentiment. FIIs remained net sellers, while domestic institutional investors provided some support to the market.
