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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 1:30 p.m. the Sensex fell 590.57 points or 0.69 percent to 84,406.56, while the broader Nifty declined to 25,875.30, down 178.60 points or 0.69 percent.
At the close, the BSE Sensex stood at 592.67 points, or 0.70%, to close at 84,404.46, while the NSE Nifty50 declined 176.05 points, or 0.68%, to 25,877.75.
In the broader market, the Nifty MidCap 100 inched up 0.1%, whereas the Nifty SmallCap 100 dipped 0.1%.
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.
Global Markets
The Dow declined whilst the S&P 500 remained flat on Wednesday following the Federal Reserve’s rate reduction, with Powell indicating uncertainty about a December rate cut. The Nasdaq achieved a new closing record, supported by Nvidia, which became the first company to achieve a $5 trillion market capitalization.
Asian markets saw mixed performance after Federal Reserve Chairman Powell’s cautious stance on future rate cuts.
FIIs Turn Net Sellers
Foreign institutional investors (FIIs) continued their selling streak, offloading equities worth Rs 2,540.16 crore on Wednesday, according to provisional exchange data. Persistent outflows from overseas investors have been weighing on market sentiment.
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.”
Rupak De, Senior Technical Analyst at LKP Securities, said that Nifty sentiment remains intact with a strong bullish technical setup. Nifty has initial support at 25,850. If Nifty falls below 25,850, then the index will slip into a consolidation zone. On the higher side, Nifty needs to decisively break the resistance of 26,100, above which the doors will open for the next leg of rally towards 26,300 to 26,500.
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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