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Sensex, Nifty were trading with deep cuts on Thursday, even as the US Federal Reserve carried out a widely expected rate cut; Know why
Why Is Stock Market Down Today?
Why Is Indian Stock Market Falling Today? Benchmark equity indices traded lower on Thursday, even as the US Federal Reserve delivered a widely anticipated rate cut. Investor sentiment remained subdued ahead of the much-watched meeting between US President Donald Trump and Chinese President Xi Jinping, with global markets awaiting cues on trade negotiations. Continued foreign fund outflows further pressured domestic equities.
At 12 pm, the Sensex was down 492.59 points, or 0.58 per cent, at 84,504.54, while the Nifty declined 145.95 points, or 0.56 perc ent, to 25,907.95.
Dr. Reddy’s Laboratories, HDFC Life, Sun Pharma, Bharti Airtel, and Tata Steel were among the top Nifty laggards, falling up to 5 per cent.
Key Factors Dragging the Market
Fed Hints at Pause After Rate Cut
The US Federal Reserve cut rates by 25 bps overnight, in line with expectations. However, Fed Chair Jerome Powell signalled a pause in further easing, citing limited fresh data amid the ongoing US government shutdown. His cautious tone tempered risk appetite across global markets, including India.
Ross Maxwell, Global Strategy Lead at VT Markets, said: “Stocks and bond prices fell, and yields pushed higher after Chair Powell struck a more cautious tone, noting differing views and stating that a December cut was far from guaranteed… Whilst the Fed is easing, it is doing so with caution, which could cause increased volatility in equities.”
The Fed also highlighted rising employment-related risks and persistent inflationary pressures.
FIIs Turn Net Sellers
Foreign institutional investors sold equities worth Rs 2,540.16 crore on Wednesday, adding to market weakness.
Volatility Inches Higher
The India VIX rose 1.5 percent to 12.16, signalling increased nervousness among traders.
Technical Outlook
Anand James, Chief Market Strategist at Geojit Financial Services, noted that “Nifty’s momentum slowed near recent peaks, with oscillators showing hesitation. However, bullish continuation patterns remain visible. Dips towards 25,990 may attract buying, while immediate support lies near 25,886.”
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
October 30, 2025, 13:10 IST
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