Markets Open Flat Amid Fed Rate Cues and Geopolitical Uncertainty; IT, Pharma Under Pressure
Indian equity benchmarks opened on a cautious note Thursday, reflecting global uncertainty after the US Federal Reserve’s policy decision and weak cues from Asian markets. Early trade saw pressure in sectors like IT, PSU banks, FMCG, and pharmaceuticals.
As of 9:34 am, the BSE Sensex was trading marginally higher by 1.66 points at 81,446.32, while the NSE Nifty inched up 9.90 points to 24,821.95.
The broader market showed mixed movement:
- Nifty Bank gained 43.15 points (0.08%) at 55,871.90
- Nifty Midcap 100 slipped 40.35 points (0.07%) to 58,068.85
- Nifty Smallcap 100 rose 25.60 points (0.14%) to 18,404.05
Global Cues in Focus
Markets are reacting to the Federal Reserve’s latest policy stance. As anticipated, the Fed kept interest rates unchanged, but the tone of the policy statement hinted at growing uncertainty over future rate cuts.
“The Fed now projects only one rate cut in 2026 and 2027, with an increasing number of policymakers forecasting no cuts at all for the remainder of 2024,” said Mandar Bhojane of Choice Broking.
Geopolitical Risks Cloud Outlook
Analysts also flagged geopolitical tensions, particularly in the Middle East, as a key factor influencing market range-bound behavior.
“The Nifty is expected to trade between 24,500 and 25,000 unless significant developments emerge in the Israel-Iran conflict,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. “A positive breakthrough could push the index above the upper band, while any escalation—especially disruptions around the Strait of Hormuz—could trigger a crude oil spike and pressure the index near the 24,500 support level.”
Stock Highlights and Institutional Activity
In the Sensex basket:
- Top laggards included Tech Mahindra, IndusInd Bank, Infosys, HCLTech, PowerGrid, and Tata Steel
- Top gainers were Titan, Mahindra & Mahindra, Kotak Mahindra Bank, and Tata Motors
Foreign and domestic institutional investors continued to show confidence:
- FIIs were net buyers, pumping in ₹890 crore on June 18
- DIIs remained bullish, investing ₹1,091 crore in equities
Mixed Signals from Global Markets
Asian markets traded mostly in the red, with indices in Bangkok, Tokyo, Seoul, Jakarta, Hong Kong, and China showing declines.
On Wall Street, major US indices ended on a mixed note following Fed Chair Jerome Powell’s remarks:
- Dow Jones: down 44.14 points (0.10%) at 42,171.66
- S&P 500: slipped 1.85 points (0.03%) to 5,980.87
- Nasdaq: gained 25.18 points (0.13%) to 19,546.27
