Indian Stock Market Opens Flat as US Fed Pauses Rate Cut Cycle
The Indian stock market opened flat today as investors awaited further cues following the US Federal Reserve's decision to pause its rate cut cycle. Market participants are closely monitoring global economic trends for any potential impacts on domestic trading.
Mumbai: The Indian stock market opened on a cautious note on Thursday, with the benchmark indices trading flat. This movement comes in response to the US Federal Reserve’s decision to pause its rate cut cycle, which started last September and has so far delivered a total reduction of 100 basis points (bps).
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Stock Market Performance Overview
At the opening bell, the BSE Sensex edged up by 49 points or 0.065%, standing at 76,582.44, while the NSE Nifty 50 climbed by 43 points or 0.18%, reaching 23,197.20.
Market breadth remained positive, with 1,539 stocks advancing, 701 stocks declining, and 128 stocks remaining unchanged on the BSE.
US Fed Policy and Global Impact
The Federal Open Market Committee (FOMC) in the US decided to pause interest rates at 4.25-4.5%, emphasizing a data-dependent approach moving forward. The Fed reassured investors that it is not on a “preset course” regarding monetary policy.
Furthermore, the Fed has continued to trim its holdings in Treasury securities, agency-backed debt, and mortgage-backed securities, aligning with expectations from analysts and investors alike.
According to Ankita Pathak, Chief Macro and Global Strategist at Ionic Wealth by Angle One, this policy decision was largely a non-event in terms of market reaction.
Another key factor influencing US markets is the rapid evolution of Chinese artificial intelligence (AI) advancements, which is significantly impacting technology heavyweights in the global stock market.
Market Expert Opinions on Fed Policy
Dhawal Ghanshyam Dhanani, Fund Manager at SAMCO Mutual Fund, noted that with inflation still elevated and labor market conditions remaining strong, the anticipated “Fed Pivot” has temporarily stalled.
“This gives the impression that the FOMC wants more time to assess the effects of the current US administration’s policies, including tariffs, tax cuts, and deregulation,” said Dhanani.
Key Gainers and Losers in the Indian Stock Market
The stock market saw mixed movements among blue-chip companies:
- Top Gainers in Nifty 50:
- Bajaj Finance
- Bharti Airtel
- Bajaj Finserv
- Maruti Suzuki India
- Hindustan Unilever
- Top Losers in Nifty 50:
- Tata Motors
- Infosys
- ICICI Bank
- HDFC Bank
- Kotak Mahindra Bank Ltd.
Sectoral Performance on NSE
Out of 12 sectoral indices on the National Stock Exchange (NSE), nine sectors advanced while three sectors declined:
- Biggest Gaining Sector: Nifty Realty
- Biggest Declining Sector: Nifty Auto
Institutional Investment Trends
Foreign Institutional Investors (FIIs) continued their selling spree for the 19th consecutive session on January 29, selling equities worth Rs 2,586 crore. Meanwhile, Domestic Institutional Investors (DIIs) stepped in as net buyers, purchasing equities worth Rs 1,792.71 crore on the same day.
Also Read | Indian Stock Market Opens Higher as Nifty Crosses 23,000 Amid Union Budget Optimism
Pre-Budget Market Speculations
With the Union Budget 2025 around the corner, market experts noticed a surge in select fertilizer and railway stocks.
This spike has led to speculation about whether this was a one-day trend or the beginning of a new rally in these sectors.
According to analysts, stocks linked to infrastructure, defense, and capital goods may witness volatility in the coming days as budget announcements draw closer
