- Indian markets opened subdued on US Fed’s hawkish outlook.
- Federal Reserve signaled
- Crude oil prices declined after US-Iran peace agreement.
Indian equity markets opened on a subdued note on Thursday as investors digest the US Federal Reserve’s latest policy signals and mixed global market cues.
The BSE Sensex rang the opening bell near 77k, slipping almost 80 points, while the NSE Nifty50 tested 24k, falling only 15 points, as of 9:15 AM.
While the formal signing of the US-Iran peace deal has eased concerns around global energy supplies and pushed crude oil prices below $80 per barrel, investors remained cautious after the US Federal Reserve signalled that interest rates could stay higher for longer. As a result, the GIFT Nifty pointed to a subdued start, while Indian benchmark indices traded with a slight negative bias in pre-open trade despite the supportive backdrop of softer oil prices.
GIFT Nifty Signals Muted Opening
Early indicators pointed to a lacklustre start for domestic equities.
The GIFT Nifty was trading around 24,031, down 13 points, suggesting benchmark indices may remain range-bound in opening trade as investors refrain from taking aggressive positions ahead of fresh global cues.
In the pre-open session at around 9:03 AM, the Sensex was up 93.57 points, or 0.12 per cent, at 77,249.19, while the Nifty slipped 36.10 points, or 0.15 per cent, to 24,049.60.
The cautious start comes despite easing crude oil prices, as traders assess the implications of the US central bank’s policy outlook and its potential impact on global liquidity and risk appetite.
US Federal Reserve’s Hawkish Pause In Focus
Global markets came under pressure after the US Federal Reserve kept interest rates unchanged but struck a relatively hawkish tone regarding the future policy path.
The Fed maintained the federal funds rate within the 3.5-3.7 per cent range, while its latest projections indicated that policymakers continue to see the possibility of tighter monetary policy in the coming years.
Although Federal Reserve Chair Kevin Warsh avoided giving explicit guidance on future rate moves, the updated dot plot suggested that officials are not completely ruling out further rate increases in 2026.
The commentary dampened hopes of an aggressive easing cycle and weighed on investor sentiment globally.
Also Read : How Affordable Experiences Are Replacing Costly Getaways
Asian Markets Trade Mixed After Wall Street Retreat
Most major Asia-Pacific markets traded lower in early deals following weakness in US equities.
Hong Kong’s Hang Seng Index and Australia’s S&P/ASX 200 slipped into negative territory, reflecting cautious sentiment across the region.
However, Japan remained an exception, with the Nikkei 225 advancing nearly 2 per cent and climbing above the 71,000 mark for the first time, supported by domestic buying and optimism around corporate earnings.
Wall Street Ends Lower Despite Record Highs
US markets witnessed sharp intraday volatility overnight.
The Dow Jones Industrial Average briefly touched a fresh record high before reversing course and ending nearly 1 per cent lower. The S&P 500 and Nasdaq Composite also finished in the red as investors reacted to the Federal Reserve’s updated economic projections and interest-rate outlook.
The decline reflected concerns that higher-for-longer interest rates could weigh on economic growth and corporate valuations.
Crude Oil Extends Decline After US-Iran Agreement
Oil prices remained under pressure after the United States and Iran moved forward with an interim agreement aimed at restoring stability in the region.
The deal includes the reopening of the Strait of Hormuz, one of the world’s most important energy corridors, and the easing of US sanctions on Iranian oil exports.
As a result, Brent crude futures fell further, with the June contract trading around $78.37 per barrel, down nearly 1.5 per cent.
Lower oil prices are generally viewed as positive for India, as they help reduce inflationary pressures, improve the current account balance and ease pressure on the rupee.
Also Read: Will West Bengal Scrap Krishak Bandhu? What The Proposed PM-Kisan Switch Means For Farmers
Gold And Silver Slip As Risk Appetite Improves
Precious metals also retreated in early trade.
Gold futures declined nearly 1 per cent, while silver prices fell close to 2 per cent as investors shifted towards risk assets and concerns over energy-driven inflation eased following the US-Iran agreement.
BREAKING NOW: Indore fire tragedy as EV short circuit triggers deadly explosions
