Benchmark indices closed in the red for the third consecutive session on Thursday, with the Sensex declining 82.79 points or 0.10 per cent to 81,361.87 and the Nifty 50 slipping 18.80 points or 0.08 per cent to 24,793.25, as investors turned cautious amid hawkish Federal Reserve signals and escalating Middle East tensions.

The market opened flat with the Sensex at 81,403.94 against its previous close of 81,444.66, while the Nifty opened at 24,803.25 compared to Wednesday’s close of 24,812.05. Trading remained range-bound throughout the session as investors digested mixed global cues.

“The US Fed meeting had somewhat hawkish takeaways on the future rate path,” said Satish Chandra Aluri from Lemonn Markets Desk. “Although the US Fed kept the rates on hold and projected the same two more rate cuts in 2025, as widely expected, the message from US Fed chair Powell was on hawkish lines.”

The Federal Reserve’s latest projections indicate lower growth, higher inflation and unemployment ahead as tariffs likely get factored into prices. The central bank now projects only one 25 basis points rate cut each in 2026 and 2027, dampening hopes for an immediate monetary policy pivot.

All sectoral indices except auto ended in the red, with broader markets underperforming significantly. The Nifty Midcap 100 declined 949.25 points or 1.63 per cent to 57,159.95, while the Nifty Next 50 fell 940.55 points or 1.41 per cent to 65,848.15. The Nifty Bank dropped 251.30 points or 0.45 per cent to 55,577.45.

Among individual stocks, Tata Consumer Products led the gainers on Nifty 50, surging 2.14 per cent to close at ₹1,088. Eicher Motors gained 1.71 per cent to ₹5,485, while Mahindra & Mahindra advanced 1.58 per cent to ₹3,089. Wipro climbed 1.30 per cent to ₹265 and Dr Reddy’s Laboratories rose 1.27 per cent to ₹1,330.

On the losing side, Adani Ports & SEZ tumbled 2.52 per cent to ₹1,338, followed by Bajaj Finance which declined 2.29 per cent to ₹898. Shriram Finance fell 2.08 per cent to ₹648.30, Tech Mahindra dropped 1.91 per cent to ₹1,678, and Adani Enterprises slipped 1.83 per cent to ₹2,414.

“Elevated crude oil prices also pressured the market, as higher oil costs impact inflation and corporate margins negatively,” noted Vaibhav Vidwani, Research Analyst at Bonanza. Escalating geopolitical tensions in the Middle East added to the risk-off sentiment, further weighing on investor confidence.

Market breadth remained weak with 3,018 stocks declining against 959 advancing on the BSE, while 140 remained unchanged. A total of 4,117 stocks were traded during the session. Seventy-three stocks hit 52-week highs while 79 touched 52-week lows.

The Indian rupee traded weak at 86.68, down 0.25 against the dollar. “Rising crude oil prices and escalating Middle East tensions, including renewed US pressure on Iran’s nuclear program, weighed on sentiment,” said Jateen Trivedi from LKP Securities. “Additionally, the US Fed’s indication that rate cuts may be delayed by around six months supported the dollar, adding pressure on the rupee.”

Gold prices remained volatile as markets reacted to the Fed’s policy stance. “Comex gold moved between $2,347 and $2,375, while MCX gold traded between ₹98,650 and ₹99,450,” Trivedi added. “Despite the Fed’s hawkish tone, ongoing geopolitical tensions between Iran and Israel continue to offer downside protection for gold.”

“The strength in the benchmark index does not reflect the underlying market tone, as we are witnessing gradual profit booking across sectors and in the broader market,” said Ajit Mishra from Religare Broking. “With geopolitical tensions driving crude prices higher, further deterioration is likely if crude makes a sustained move above the $80 mark.”

From a technical perspective, the Nifty continues to trade below key moving averages. “On the hourly chart, the index continues to trade below the 200-DMA, reflecting weak market sentiment,” observed Rupak De from LKP Securities. “This negative sentiment is likely to persist as long as the index remains below 24,850.”

Looking ahead, market participants remain cautious about global developments and their impact on domestic equities. “Investors are likely to monitor global cues closely, especially geopolitical tensions,” said Vidwani. “Domestic corporate earnings will influence near-term trends.” The Nifty is expected to oscillate within the 24,400-25,200 range in the near term, with immediate support at 24,700 and resistance at 25,000 levels.

Published on June 19, 2025