Markets experienced a significant downturn on Thursday, largely attributed to hawkish remarks from US Federal Reserve Chair Jerome Powell, which catalyzed a selloff. The benchmark Sensex fell by 592.67 points, or 0.70 percent, closing at 84,404.46, while the Nifty 50 declined by 176.05 points, or 0.68 percent, to finish at 25,877.85. This market response followed the Fed’s announcement of a widely anticipated 25 basis point rate cut, combined with Powell’s indication that no firm commitment for a further rate cut in December would be forthcoming.
“The primary reason for the market’s downturn was global uncertainty stemming from the US Federal Reserve’s latest 25 basis point rate cut, alongside Chair Powell’s comments suggesting an absence of a commitment for future cuts,” stated Abhinav Tiwari, Research Analyst at Bonanza. The market showed broad-based selling pressure, with 2,291 declining stocks against 1,876 advances on the Bombay Stock Exchange (BSE).
Significant losers on the Nifty 50 included Dr Reddy’s Laboratories, which dropped 3.79 percent to ₹1,203.50; Cipla, which fell 2.54 percent to ₹1,541.00; and HDFC Life, down 2.01 percent to ₹746.00. Other notable decliners included IndiGo, down 1.68 percent to ₹5,715.50, and Bharti Airtel, which lost 1.50 percent to finish at ₹2,069.00. Conversely, Coal India rose 1.58 percent to ₹388.05, and Hindalco and Larsen & Toubro each gained 0.79 percent, ending at ₹863.00 and ₹3,989.40, respectively.
Vinod Nair, Head of Research at Geojit Investments Limited, commented, “The market consolidated following Powell’s indication that this might be the last rate cut of 2025, which tempered expectations for further monetary easing. This created a stronger U.S. dollar and sparked a risk-off sentiment across emerging markets, including India.”
Sector-wise, performances were predominantly negative, with healthcare, financials, and pharmaceutical indices each declining around 0.7 percent. The Nifty Bank slipped 0.61 percent to 58,031.10, while the Nifty Financial Services index fell 0.77 percent to 27,376.00. The broader market appeared more resilient, with the Nifty Midcap 100 only declining by 0.09 percent to 60,096.25. Realty and Energy sectors were the only gainers, showing modest increases of 0.13 percent and 0.04 percent, respectively.
In addition to these losses, foreign institutional investors resumed selling. “Investors remained cautious after the Fed chair’s indication that more rate cuts over the next two months seem unlikely. Traders are also reducing their positions in anticipation of trade negotiations between the US and China,” commented Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
Ponmudi R, CEO of Enrich Money, remarked, “Markets faced broad-based selling as uncertainties regarding the U.S. Federal Reserve’s future rate-cut plans outweighed prior optimism. A slight depreciation of the rupee against the U.S. dollar also contributed to this cautious investor sentiment.”
Commodity markets saw volatility in gold prices, which recorded mild gains at ₹1,21,130 per 10 grams, reflecting a 0.38 percent increase. Jateen Trivedi, VP Research Analyst at LKP Securities, indicated that gold prices are expected to fluctuate within a range of ₹1,18,000 to ₹1,24,500 in the short term.
Looking forward, market participants are keenly awaiting the outcome of the Trump-Xi meeting in South Korea. Tiwari added, “Volatility could persist, but a positive resolution in global trade or fiscal issues may help stabilize and boost market confidence in the upcoming sessions.”
Published on October 30, 2025.
