- Nifty50 dips below 24,800 amid high intraday volatility.
- Pharma, IT, and Metal stocks drag indices; Auto and Realty outperform.
- Global investors await Fed’s rate stance amid Israel-Iran conflict.
Indian benchmark indices traded erratically on Wednesday, weighed down by global uncertainty and cautious investor sentiment. The Nifty50 slipped below 24,800 after a short-lived rally, while Sensex lost over 200 points.
Investors are closely tracking the U.S. Federal Reserve’s upcoming policy decision, expected late Wednesday. With inflation cooling in the UK and economic risks rising globally, markets are pricing in possible rate cuts later in the year.
Sensex, Nifty Slip in Volatile Trade as Investors Brace for Fed and Geopolitical Shockwaves
The Indian markets opened on a weak note, mirroring negative cues from the GIFT Nifty. Although early trade showed some signs of recovery, uncertainty quickly returned. The Nifty50’s failure to sustain gains near the 25,000 level signaled investor unease.
Selling pressure intensified across key sectors such as Media, Pharma, and IT, which had previously driven market strength. Notably, Hindustan Zinc saw a sharp 6% drop post a large trade, while BSE Ltd initially fell 5% before recovering slightly.
In contrast, Auto and Consumer Durables bucked the broader downtrend, supported by positive news around India’s effort to diversify rare earth supply chains. This strategic move could reduce dependency on China and stabilize costs for EV and electronics manufacturing.
Meanwhile, European equities remained largely flat as global markets awaited clarity from the Fed. While a rate hold is expected, Powell’s remarks on inflation risks, especially from oil prices, will shape near-term capital flows and risk appetite.
With global and domestic uncertainties mounting, Indian markets are likely to remain volatile. Investors should stay cautious and watch for signals from the Fed and global geopolitical developments before making aggressive bets.
“Markets hate uncertainty — and right now, we have both policy and geopolitical risks piling up.” – Anonymous market strategist
