Why Did the Indian Stock Markets Open Lower After the US Fed Rate Cut?
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Synopsis
The Indian stock market started lower on Thursday despite the US Federal Reserve's 25bps rate cut. Analysts suggest a cautious 'buy-on-dips' strategy amid mixed signals. Key stocks faced pressure while others showed resilience. Stay tuned to see how the market navigates these challenges.
Key Takeaways
- Indian market opened lower despite US Fed rate cut.
- Sensex dipped by 228 points.
- Nifty fell by 81 points.
- Market analysts suggest a cautious 'buy-on-dips' approach.
- Top gainers included L&T, Tata Motors, and Bajaj Finance.
Mumbai, Oct 30 (NationPress) The Indian stock market commenced on a downward trend on Thursday as the Federal Reserve's decision to reduce rates by 25 basis points failed to stimulate the market positively.
Both benchmark indices, the Sensex and Nifty, recorded losses in early trading. The Sensex dipped by 228 points, or 0.27 percent, settling at 84,770, while the Nifty decreased by 81 points, or 0.31 percent, to 25,973.
“From a technical standpoint, the Nifty maintains a sideways-to-bullish bias as long as it remains above the 25,900–26,000 support zone,” analysts stated.
“On the upside, immediate resistance is identified around 26,100–26,200, and a sustained rise above this range could set the stage for additional gains toward 26,300–26,400 shortly,” experts indicated.
Several well-known stocks faced pressure during morning trading, including Bharti Airtel, Sun Pharma, ITC, Tata Steel, Power Grid, Titan, Kotak Bank, Infosys, Axis Bank, Trent, and HCL Tech, which all saw declines of up to 1.5 percent.
Conversely, a few stocks managed to remain positive. L&T, Tata Motors, Bajaj Finance, TCS, Ultratech Cement, Adani Ports, Tech Mahindra, and SBI emerged as top gainers on the Sensex.
The subdued opening in Indian markets followed the US Federal Reserve's announcement of a 25 basis points rate cut, bringing the benchmark federal funds rate to a range of 3.75 percent to 4 percent.
Nevertheless, Fed Chair Jerome Powell's remark that another rate cut in December was “far from a foregone conclusion” dampened investor sentiment on Wall Street, subsequently impacting trends in Asian markets.
In the broader market, the Nifty MidCap index remained flat, while the Nifty SmallCap index edged up by 0.15 percent.
Among sectoral indices, the Nifty Pharma index experienced the steepest drop, down 0.76 percent.
The Nifty Metal and FMCG indices also fell by 0.4 percent each, while the Nifty Private Bank index saw a 0.2 percent decline.
Meanwhile, the Nifty Realty index defied the trend, rising by 0.5 percent in early trading.
Analysts suggested that “Considering the increased volatility and mixed global signals, traders should adopt a cautious ‘buy-on-dips’ approach, especially when utilizing leverage.”
Point of View
Our commitment is to provide you with accurate and unbiased financial news. The current downturn in the Indian stock market following the US Fed's rate cut illustrates the complexities of global market dynamics. While some sectors show resilience, caution is advised for traders navigating this volatile environment.
NationPress
31/10/2025
Frequently Asked Questions
What caused the Indian stock market to open lower?
The Indian stock market opened lower primarily due to the US Federal Reserve's 25 basis points rate cut not having a positive impact, alongside mixed global signals affecting investor sentiment.
Which stocks were the top losers?
Top losers included Bharti Airtel, Sun Pharma, ITC, Tata Steel, Power Grid, Titan, Kotak Bank, Infosys, Axis Bank, Trent, and HCL Tech, which all saw declines of up to 1.5 percent.
