The impact of 25 basis points cut in interest rates by the US Federal Reserve was negative on the Indian stock market. At market closing, BSE Sensex fell by more than 500 points and closed below 84,500, while NSE Nifty fell by more than 160 points and went below the level of 25,900. Top Losers included Dr. Shares of big players like Reddy’s Labs, HDFC Life, Sun Pharma, Bharti Airtel and Tata Steel witnessed a decline of up to 5%. Interestingly, while the Asian markets witnessed a rise, the Indian markets continued to fall. The main reason for this was the selling of foreign investors. On October 29, FIIs sold shares worth ₹2,540 crore, while Domestic Institutional Investors bought shares worth ₹5,693 crore, i.e. they were net buyers. Market experts believe that uncertainty regarding Fed policies, continuous selling by foreign investors, and increasing volatility have slowed down the pace of the Indian market. In the coming days, Global Financial Developments and Commodity Price Movements will decide what will be the next direction of Sensex and Nifty.

Central Bank Federal Reserve has once again cut the interest rates. This time the Fed has reduced its key lending rate by 0.25 percentage points, due to which the new range has been fixed from 3.75% to 4%. This decision has come at a time when the threat of inflation has reduced somewhat, but the slowdown in the labor market remains a cause for concern. Interestingly, this decision comes during the US Government Shutdown, which has been going on for over a month, with official economic data not being available. In such a situation, the Fed has to depend on private data sources and alternative reports. The US economy lost nearly 32,000 jobs in September, indicating an economic recession. On the other hand, Trump Administration’s Tariffs have again fueled the fear of inflation. Now politics has also become heated – Donald Trump has indicated that he may announce a new Chair in place of Fed Chair Jerome Powell by the end of this year, while Powell’s term is to end in May next year.