Indian Markets Tumble as Fed Chair Signals Potential End to Rate Cuts

1 min read Updated on 30 Oct 2025, 04:02 PM

Reviewed by

Shriram ShekharScanX News Team

Overview

Indian stock markets experienced a significant downturn, with Nifty 50 falling 176 points to 25,878 and Sensex dropping 593 points to 84,404. The decline was primarily attributed to Federal Reserve Chair Jerome Powell's hint at a possible conclusion to rate cuts. Large-cap stocks, pharmaceutical, and financial sectors were particularly affected. Dr Reddy's Laboratories faced pressure due to semaglutide concerns, while Cipla dropped 3% following the CEO's resignation announcement. Coal India emerged as the top Nifty gainer. Mixed earnings reactions were observed across various companies. Market volatility was influenced by a stronger dollar, risk-off sentiment in emerging markets, mixed domestic earnings, and derivatives expiry.

*this image is generated using AI for illustrative purposes only.

Indian stock markets faced a significant downturn as Federal Reserve Chair Jerome Powell hinted at a possible conclusion to rate cuts. The benchmark indices, Nifty 50 and Sensex, both experienced notable declines, reflecting the impact of global economic signals on domestic markets.

Market Performance

Index	Change (points)	Closing Value
Nifty 50	-176.00	25,878.00
Sensex	-593.00	84,404.00

The market's negative sentiment was primarily driven by losses in large-cap stocks and weakness in the pharmaceutical and financial sectors.

Sector-wise Impact

Pharmaceutical Sector

Dr Reddy's Laboratories: Faced pressure due to concerns surrounding semaglutide
Cipla: Dropped 3.00% following the CEO's announcement to step down

Energy Sector

Coal India: Emerged as the top Nifty gainer, rising nearly 2.00% on firm coal prices

Mixed Earnings Reactions

Company	Performance
PB Fintech	Surged 7.00% (beat estimates)
BHEL	Gained 3.00-7.00%
Aditya Birla Capital	Gained 3.00-7.00%
Canara Bank	Gained 3.00-7.00%
LIC Housing Finance	Declined (post-results)
Union Bank of India	Declined (post-results)

Market Volatility Factors

Stronger dollar
Risk-off sentiment across emerging markets
Mixed domestic earnings
Derivatives expiry

The Indian markets' reaction underscores the interconnectedness of global economic policies and domestic market performance. As investors digest the implications of potential changes in the Fed's rate cut strategy, market participants may need to reassess their positions and strategies in the coming sessions.

Read Next Article

Sensex Gains 240 Points, Nifty Crosses 26,000 Ahead of Fed Policy Decision

1 min read Updated on 29 Oct 2025, 09:54 AM

Reviewed by

Radhika SahaniScanX News Team

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Overview

Indian stock markets showed positive momentum on Tuesday, with Sensex rising 240 points (0.28%) to 84,868 and Nifty gaining 77 points (0.29%) to 26,009. Top gainers included Asian Paints, L&T, Reliance Industries, Trent, and Tata Steel, each up 1-1.5%. The oil and gas sector outperformed with a 0.80% gain. Investors are anticipating the U.S. Federal Reserve's policy decision, with a 99.90% probability of a 25-basis-point rate cut according to CME's FedWatch Tool.

*this image is generated using AI for illustrative purposes only.

Indian stock markets displayed positive momentum on Tuesday, with key indices advancing as investors eagerly await the U.S. Federal Reserve's policy decision. The market's upward trend was supported by gains in select blue-chip stocks and sector-specific movements.

Market Performance

The benchmark indices closed in the green, reflecting overall positive sentiment:

Index	Points Change	Percentage Change	Closing Level
Sensex	+240	+0.28%	84,868
Nifty	+77	+0.29%	26,009

Top Gainers

Leading the rally on the Sensex were:

Company	Percentage Gain
Asian Paints	1% - 1.5%
L&T	1% - 1.5%
Reliance Industries	1% - 1.5%
Trent	1% - 1.5%
Tata Steel	1% - 1.5%

Broader Market and Sector Performance

The broader market showed mixed results:

Index	Percentage Change
Midcap	+0.20%
Smallcap	-0.10%

Notably, the oil and gas sector outperformed with a 0.80% gain.

U.S. Federal Reserve Policy Anticipation

Market participants are keenly watching the upcoming U.S. Federal Reserve policy decision. According to CME's FedWatch Tool, there is a 99.90% probability of a 25-basis-point rate cut. This anticipation is likely influencing investor sentiment and market movements.

The positive close of Indian markets, despite mixed performance in the broader indices, suggests that investors are optimistic about the potential outcomes of the Fed's decision. However, it's important to note that market reactions can be volatile following such significant policy announcements.

As global markets continue to navigate through economic uncertainties, Indian investors should stay informed about both domestic and international factors that could impact market trends in the coming days.