Indian Stock Market Trades Flat Amid US Fed Policy Uncertainty
The Indian benchmark indices opened on a flat note on Thursday, influenced by the US Federal Reserve's policy decision and weak cues from Asian markets.
Mumbai: The Indian benchmark indices opened on a flat note on Thursday, influenced by the US Federal Reserve’s policy decision and weak cues from Asian markets. Early trading saw selling pressure in key sectors including IT, PSU banks, FMCG, and pharmaceuticals.
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Market Opening Snapshot
At around 9:34 am:
- Sensex was trading at 81,446.32, up by just 1.66 points or 0.00%.
- Nifty rose by 9.90 points or 0.04% to 24,821.95.
- Nifty Bank climbed 43.15 points or 0.08% to 55,871.90.
- Nifty Midcap 100 dropped 40.35 points or 0.07% to 58,068.85.
- Nifty Smallcap 100 added 25.60 points or 0.14% to reach 18,404.05.
US Fed Keeps Rates Steady, Trims Long-Term Cut Outlook
As anticipated, the US Federal Reserve kept interest rates unchanged. However, its revised outlook indicated only one quarter-point cut each in 2026 and 2027, sparking mixed sentiment. A growing minority within the Fed now predicts no rate cuts for the rest of 2025, altering earlier expectations of two cuts.
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“The Fed slightly revised its outlook, projecting just one quarter-point cut in both 2026 and 2027,” said Mandar Bhojane of Choice Broking.
Nifty Rangebound on Geopolitical Uncertainty
Experts believe that the 24,500–25,000 range for the Nifty will continue to hold unless there is a clear shift in geopolitical developments.
“If de-escalation occurs in the Israel-Iran conflict, Nifty could break the upper resistance. But any escalation, especially near the Strait of Hormuz affecting crude oil prices, may push Nifty below 24,500,” said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
Also Read: Stock Market Ends in Red Amid Rising Israel-Iran Tensions
Top Movers on Sensex
- Top Losers: Tech Mahindra, IndusInd Bank, Infosys, HCLTech, PowerGrid, Tata Steel
- Top Gainers: Titan, M&M, Kotak Mahindra Bank, Tata Motors
Institutional Activity
- FIIs were net buyers on June 18, purchasing equities worth ₹890 crore.
- DIIs also remained net buyers, investing ₹1,091 crore.
Global Market Sentiment
Asian markets, including Bangkok, Japan, Seoul, Jakarta, Hong Kong, and China, were all trading in the red.
US markets ended mixed after the Fed decision and Jerome Powell’s commentary:
- Dow Jones: down 44.14 points or 0.10% at 42,171.66
- S&P 500: down 1.85 points or 0.03% at 5,980.87
- Nasdaq: up 25.18 points or 0.13% at 19,546.27
