MUMBAI– Indian equity benchmarks closed sharply lower on Thursday, mirroring weak global cues after the U.S. Federal Reserve cut interest rates as expected but signaled that it may be the final reduction of 2025.
Caution also prevailed among investors ahead of fresh developments in U.S.-China trade negotiations.
The Sensex dropped 592.67 points, or 0.7 percent, to close at 84,404.46, while the Nifty fell 176.05 points, or 0.68 percent, to settle at 25,877.85.
“The Nifty struggled to hold higher levels, with persistent selling dragging it lower. On the technical front, the index has immediate support near 25,800, while resistance is seen around 26,000,” market experts said.
Among Sensex components, Larsen & Toubro (L&T) led the gainers, rising 0.91 percent. BEL, Maruti Suzuki, Adani Ports, and Titan also ended in positive territory.
Bharti Airtel, Power Grid, Tech Mahindra, Infosys, and Bajaj Finance were the major laggards, each slipping over 1 percent.
In the broader market, the Nifty MidCap 100 index eased 0.09 percent, while the Nifty SmallCap 100 declined 0.1 percent, reflecting mixed trends among smaller stocks.
Most sectoral indices ended in the red, except for Nifty Energy, which managed to close higher. Nifty Financial Services declined 0.7 percent, while IT, Auto, Metal, Pharma, Bank, and Oil & Gas sectors also saw losses.
“As expected, the U.S. Fed cut rates by 25 basis points. However, the market consolidated after Chair Jerome Powell suggested this could be the final rate cut of the year, cooling expectations for further monetary easing,” analysts noted.
They added that the resulting strength in the U.S. dollar fueled a risk-off mood across emerging markets, including India.
“Investors remain watchful of the Trump–Xi trade negotiations, as uncertainty surrounding the talks continues to weigh on market sentiment,” experts said. (Source: IANS)
