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Markets end lower amid waning hopes over Fed’s December rate cut
Oct-30-2025

Indian equity benchmarks ended significantly lower on Thursday tracking weak global cues after the US Federal Reserve cut interest rates as expected but hinted that it could be the final cut of 2025. Markets started the session in red amid foreign fund outflows. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,540.16 crore on Wednesday. As day progressed, markets extended their losses and finally Sensex took hit of over 592 points, while Nifty settled below 25,900 mark. Broad-based selling witnessed on the exchanges, where Pharma, Telecom and TECK counters were leading the losers.  

Some of the important factors in trade:

Rupee tumbles against US dollar: The rupee depreciated against the American currency on a strong US dollar and a hawkish US Fed. Moreover, month-end dollar demand from Oil Marketing Companies (OMCs) and foreign fund outflows also weighed on the rupee.

GDP likely to touch 7% in FY26: Traders overlooked Chief Economic Advisor (CEA) V Anantha Nageswaran’s statement that the Indian economy responded quite satisfactorily to global headwinds and he also exuded confidence that real Gross Domestic Product (GDP) growth of India is likely to touch 7 per cent in FY26.

Early conclusion of India-EU FTA can make big difference: Traders failed to take any sense of relief with External Affairs Minister S Jaishankar’s statement that an early conclusion of the proposed free trade agreement between India and the European Union can make a ‘big difference’ in terms of stabilising the global economy and strengthening democratic forces.

Goyal to visit New Zealand next week for trade pact talks: Commerce and Industry Minister Piyush Goyal has said he will visit New Zealand next week to hold discussions on the proposed free trade agreement between the two countries. The proposed FTA is expected to further boost trade flows, promote investment linkages, strengthen supply chain resilience, and create a predictable framework for businesses in both countries.

On global front: European markets were trading lower as investors reacted to Federal Reserve Chair Jerome Powell's hawkish remarks as well as a batch of mixed big tech earnings. Asian markets ended mixed after the meeting between U.S. President Donald Trump and Chinese President Xi Jinping concluded, with Trump saying there will be a trade deal ‘pretty soon’.

Finally, the BSE Sensex fell 592.67 points or 0.70% to 84,404.46 and the CNX Nifty was down by 176.05 points or 0.68% to 25,877.85. 

The BSE Sensex touched high and low of 84,906.95 and 84,312.65 respectively. There were 07 stocks advancing against 23 stocks declining on the index.   

The broader indices ended mixed; the BSE Mid cap index rose 0.77 points, while Small cap index was down by 0.06%.

The top gaining sectoral indices on the BSE were Industrials up by 0.28%, Oil & Gas up by 0.17%, Capital Goods up by 0.14%, Realty up by 0.04% and Energy up by 0.04%, while Telecom down by 2.52%, TECK down by 1.02%, Bankex down by 0.72%, IT down by 0.52% and FMCG down by 0.48% were the top losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 0.91%, Bharat Electronics up by 0.66%, Ultratech Cement up by 0.46%, Maruti Suzuki up by 0.29% and Adani Ports & SEZ up by 0.22%. On the flip side, Bharti Airtel down by 1.64%, Power Grid down by 1.45%, Tech Mahindra down by 1.33%, Infosys down by 1.14% and Bajaj Finance down by 1.04% were the top losers.

Meanwhile, in order to promote self-reliance and reduce import dependence, Commerce and Industry Minister Piyush Goyal has called for scaling up domestic manufacturing across the electronics value chain. The commerce ministry said ‘The minister underscored the need to deepen domestic capabilities across the electronics value chain, noting that greater self-reliance in both finished products and components will be key to sustaining India's export momentum and reducing import dependence.’

The country's electronic goods imports rose by about 17 per cent to $56.15 billion in the April-September period of this fiscal. Exports, on the other hand, surged 42 per cent to $22.2 billion in April-September 2025 compared to $15.6 billion in the same period of the preceding year. Further, the ministry said the ongoing free trade agreement (FTA) negotiations with the EU, UK, and EFTA aim to unlock new market access opportunities for Indian electronics manufacturers. 

Meanwhile, the Electronics Component Manufacturing Scheme (ECMS) and Production Linked Incentive (PLI) plans are boosting domestic manufacturing depth and reducing import dependence. India's plan to achieve $180-200 billion in electronics exports by 2031 was also discussed during the deliberations.

CNX Nifty touched high and low of 26,032.05 and 25,845.25 respectively. There were 12 stocks advancing against 38 stocks declining on the index.    

The top gainers on Nifty were Coal India up by 1.49%, Larsen & Toubro up by 0.74%, Bharat Electronics up by 0.66%, Hindalco up by 0.60% and Nestle up by 0.54%. On the flip side, Dr. Reddy's Lab down by 3.89%, Cipla down by 2.59%, HDFC Life Insurance down by 1.93%, Bharti Airtel down by 1.63% and Interglobe Aviation down by 1.51% were the top losers.

European markets were trading in red; UK’s FTSE 100 slipped 48.94 points or 0.50% to 9,707.20, France’s CAC fell 57.98 points or 0.71% to 8,142.90 and Germany’s DAX was down by 59.21 points or 0.25% to 24,065.00.

Asian markets settled mixed on Thursday tracking Wall Street’s mixed performance overnight after US Federal Reserve Chair Jerome Powell lowered interest rates by another quarter point, as widely expected, and indicated that a December rate cut is far from a forgone conclusion. Chinese and Hong Kong shares dipped as the high-stakes Xi-Trump meeting lacked surprises and Trump said Nvidia's Blackwell AI chips weren't discussed with Xi Jinping. Japan’s Nikkei hit fresh record highs on the back of a weaker yen, while the Bank of Japan left interest rates unchanged as expected. Seoul shares notched another record high after the United States and South Korea concluded a $350 billion trade agreement and Samsung Electronics delivered strong Q3 earnings.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,986.90

-29.43

-0.73

Hang Seng

26,282.69

-63.45

-0.24

Jakarta Composite

8,184.06

17.84

0.22

KLSE Composite

1,614.20

2.66

0.17

Nikkei 225

51,325.61

17.96

0.04

Straits Times

4,437.44

-2.77

-0.06

KOSPI Composite

4,086.89

5.74

0.14

Taiwan Weighted

28,287.53

-7.21

-0.03
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