Sensex, Nifty trade flat on June 18 amid Fed rate hike signals
Synopsis
Indian markets opened flat on 18 June as the Fed's hold-but-hike-later stance hammered IT stocks while cheaper crude and a steady rupee kept broader indices from sliding. With FIIs turning cautious buyers and Wall Street in the red overnight, the session captures the tug-of-war defining Indian equities right now.
Key Takeaways
Sensex was down 59 points at 77,095.99 and Nifty50 slipped 8.75 points to 24,076.95 in early trade on 18 June .
Nifty IT fell 1.70 per cent ; top losers included Infosys , TCS , HCL Technologies , Wipro , and Tech Mahindra .
The US Federal Reserve held rates steady but flagged possible further hikes as inflation stays above 2 per cent .
Brent crude dropped 1.64 per cent to $78.24/barrel ; WTI fell 2 per cent to $75/barrel .
Rupee stable at 94.52 ; FIIs turned net buyers in the previous session in limited volumes.
Wall Street closed lower overnight — S&P 500 down 1.21 per cent , Nasdaq down 1.34 per cent .
Indian equity markets opened nearly flat on Thursday, 18 June, as investors weighed mixed global signals — chiefly the US Federal Reserve's decision to hold interest rates steady while leaving the door open for further hikes later this year. The BSE Sensex was trading at 77,095.99, down 59 points or 0.08 per cent, while the Nifty50 slipped 8.75 points or 0.04 per cent to 24,076.95 in early trade.
Sector Snapshot: IT Drags, Defensives Hold
IT stocks remained the session's weakest link, with the Nifty IT index declining 1.70 per cent. Top losers from the Nifty pack included Infosys, HCL Technologies, Tata Consultancy Services (TCS), Tech Mahindra, Wipro, Bajaj Finance, and Bajaj Finserv.
On the brighter side, defensive and consumption-linked sectors provided some cushion. Nifty Consumer Durables and Nifty FMCG each rose 0.31 per cent, while Nifty Metal advanced 0.25 per cent and Nifty Chemicals gained 0.21 per cent.
Fed Holds Rates, but Hawks Remain in the Room
The US Federal Reserve left its benchmark interest rate unchanged at its latest meeting, but signalled that further hikes remain on the table as US inflation continues to run above the central bank's 2 per cent target. That hawkish undertone kept sentiment cautious across Asian markets and weighed specifically on Indian IT counters, which are heavily exposed to US discretionary spending.
This is not the first time Fed uncertainty has rattled Indian IT — the sector has faced multiple risk-off sessions this year tied to US monetary policy signals.
Crude Crash and Rupee Stability Offer Relief
Partially offsetting the Fed-driven caution, international oil benchmark Brent crude slid 1.64 per cent to $78.24 per barrel, while US West Texas Intermediate (WTI) crude fell 2 per cent to $75 per barrel. The Indian rupee was holding steady at around 94.52 to the dollar.
According to market analysts, the combination of lower crude and a stable rupee provides a meaningful buffer. 'In the near term, the market will remain resilient, supported by the crash in Brent crude to around $78 levels. The rupee is stable at around the 94.52 level,' analysts noted. Bank Nifty was expected to maintain an upward bias, they added.
Global Markets: A Mixed Picture
Asian indices were split on Thursday morning. Japan's Nikkei traded over 1 per cent higher, and South Korea's KOSPI also gained more than 1 per cent. In contrast, Hong Kong's Hang Seng was down around 2 per cent, while Indonesia's Jakarta Composite and China's Shanghai Composite each declined by up to 1 per cent.
Overnight on Wall Street, the mood was downbeat: the S&P 500 fell 1.21 per cent and the Nasdaq closed 1.34 per cent lower. Analysts noted that foreign institutional investor (FII) selling has tapered off, with FIIs turning net buyers in the previous session — albeit in limited volumes — a modestly positive signal for near-term market direction.
With Fed commentary, crude trajectory, and FII flows all in flux, markets are likely to stay range-bound until clearer macro signals emerge.
Point of View
While the rest of the market shrugs. The Fed's 'hold but warn' posture is arguably more disruptive than an outright hike — it prolongs ambiguity, keeping IT earnings visibility cloudy. The real cushion here is crude, and at $78 Brent that cushion is thinner than it looks. If oil finds a floor and FII buying scales up, the broader market can hold. But IT's structural US exposure means every Fed meeting is now a sector-level event for Indian equities.
NationPress
3 Aug 2026
Frequently Asked Questions
Why are Indian markets trading flat on 18 June?
Indian equity markets are trading nearly flat on 18 June as investors digest the US Federal Reserve's decision to hold interest rates while signalling possible further hikes this year. Mixed cues from Asian markets and a fall in Wall Street overnight are adding to the cautious mood.
Which stocks are leading losses on the Nifty today?
IT stocks are leading the decline, with Infosys, TCS, HCL Technologies, Tech Mahindra, and Wipro among the top Nifty losers. Bajaj Finance and Bajaj Finserv are also in the red in early trade.
How is the fall in crude oil prices affecting Indian markets?
Brent crude sliding to $78.24 per barrel is seen as a positive for India, which is a major oil importer. Analysts say cheaper crude, combined with a stable rupee at 94.52, is limiting the downside for broader indices even as IT stocks face pressure.
What did the US Federal Reserve decide at its latest meeting?
The Fed left interest rates unchanged but indicated that further rate hikes remain possible in 2025, as US inflation continues to run above the central bank's 2 per cent target. This hawkish signal has weighed on rate-sensitive and US-exposed sectors globally.
What are FIIs doing in Indian markets currently?
Foreign institutional investor selling has reportedly tapered off, with FIIs turning net buyers in the previous session, albeit in limited volumes. Analysts view this as a modestly positive signal, though sustained FII inflows will depend on global macro clarity.
