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Indian Shares Slip After Fed Cut as Powell Tempers Hopes for Further Easing

Investors reacted to the U.S. central bank's cautious guidance that followed a small rate cut.

Overview

  • By 10:24 am Thursday, the Sensex was down 302.65 points at 84,694.48 and the Nifty 50 was lower by 98.05 points at 25,955.85.
  • The Federal Reserve cut rates by 25 basis points in line with expectations, while Chair Jerome Powell signaled limited scope for near‑term additional reductions given data gaps from a U.S. government shutdown.
  • Foreign institutional investors sold a net ₹2,540.16 crore on Wednesday, adding pressure to domestic equities.
  • Market volatility edged higher, with India VIX up 1.5% to 12.16, reflecting rising caution among traders.
  • The pullback follows Wednesday’s broad rally that lifted the Nifty above 26,000 on expectations of a Fed cut, optimism on an India–U.S. trade deal, softer crude, and stock‑specific gains including Adani group names and a jump in Varun Beverages after a Carlsberg‑linked Kenya plan.