Indian benchmark indices opened on a flat note Thursday, reacting cautiously to the US Federal Reserve’s latest policy decision and weak cues from Asian markets. Early trade saw selling pressure across IT, PSU banking, FMCG, and pharma sectors.
At around 9:34 am, the Sensex was trading marginally higher by 1.66 points at 81,446.32, while the Nifty edged up by 9.90 points to 24,821.95, showing a minimal gain of 0.04%.
The Nifty Bank index was up by 43.15 points, or 0.08%, at 55,871.90. Meanwhile, the Nifty Midcap 100 dropped 40.35 points, or 0.07%, to 58,068.85, whereas the Nifty Smallcap 100 gained 25.60 points, or 0.14%, reaching 18,404.05.
Analysts noted that while the US Federal Reserve left interest rates unchanged, it maintained its projection of two rate cuts this year. However, an increasing number of policymakers now foresee no cuts at all.
“Additionally, the Fed slightly revised its long-term outlook, projecting just one quarter-point cut each in 2026 and 2027,” said Mandar Bhojane of Choice Broking.
Market experts believe the 24,500–25,000 range for the Nifty will likely hold unless geopolitical developments — particularly from the Israel-Iran conflict — shift the market mood.
“If there’s news of de-escalation, the Nifty may break out of the upper band. However, any escalation, especially affecting the Strait of Hormuz and causing a spike in crude oil prices, could threaten the 24,500 support level,” said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Among Sensex stocks, Tech Mahindra, IndusInd Bank, Infosys, HCLTech, PowerGrid, and Tata Steel were the top losers in early trade. On the other hand, Titan, M&M, Kotak Mahindra Bank, and Tata Motors emerged as top gainers.
Foreign Institutional Investors (FIIs) remained net buyers on June 18, purchasing equities worth ₹890 crore. Domestic Institutional Investors (DIIs) also showed buying interest, investing ₹1,091 crore during the session.
Across Asia, markets in Bangkok, Japan, Seoul, Jakarta, Hong Kong, and China were trading in the red.
Meanwhile, US markets ended on a mixed note in the previous session, reacting to the Federal Reserve’s policy announcement and Fed Chair Jerome Powell’s comments. The Dow Jones closed at 42,171.66, down 44.14 points or 0.10%, while the S&P 500 dipped 1.85 points to 5,980.87. The Nasdaq, however, gained 25.18 points to close at 19,546.27, up 0.13%.
— IANS