Indian Markets Face Pressure Amid US Federal Reserve Rate Decision and Global Tech Selloff

Indian equity benchmarks faced sustained pressure during trading, reflecting cautious global sentiment after the US Federal Reserve opted to keep interest rates unchanged at approximately 3.9 per cent. The central committee voted 10-2 to hold rates steady, citing elevated inflation and a need for further data before altering borrowing costs. Higher interest rates tend to increase the appeal of US Treasuries and the dollar, reducing foreign portfolio investments in emerging markets such as India.

Domestically, the Nifty 50 closed down 50.90 points, or 0.22 per cent, at 22,698.85, marking its second consecutive session of losses. The Sensex settled 352.64 points lower at 73,246.03. Brent crude futures hovered around $115 per barrel amid Middle East conflict risks and reports of an attack on a Saudi Arabian refinery, adding pressure to fuel and energy costs.

Despite the broader market downturn, Bank Nifty bucked the trend to close 292.50 points higher at 54,267.40, recovering from intraday lows. Jio Platforms continued to draw market attention following its recent stock market debut, where the Reliance Industries subsidiary listed at a 24 per cent premium and ended its first session up 26 per cent from its IPO price of ₹1,119.

Corporate earnings reports continued to roll out across sectors. Pidilite Industries Ltd reported a 7.16 per cent increase in consolidated net profit to ₹626.46 crore for the September quarter of FY27, up from ₹584.6 crore in the same period a year ago. Aeroflex Industries announced robust financial results for Q2 FY27, with total income rising 87 per cent year-on-year to ₹207.68 crore and EBITDA reaching ₹50.34 crore. The company also announced the merger of Hyd-Air Engineering with Aeroflex Industries alongside planned capacity expansions.

In other corporate updates, TSF Investments Ltd sold 7,55,682 shares of TVS Holdings Ltd. Gautam Adani's group is reportedly exploring a potential €3 billion acquisition of Dutch energy storage firm VTTI as its owners consider selling their stakes. Meanwhile, Air India Group widened its net loss to over ₹6,000 crore in the first quarter of FY27 due to intense foreign exchange fluctuations, high fuel costs, and airspace closures.

Global markets also reacted to heavy cash burn reports from Alphabet, which saw its shares drop 10 per cent in after-hours trading and wiped nearly $400 billion off its market value. In contrast, Microsoft beat forecasts with strong cash flows, lifting its shares by 3 per cent ahead of results from Amazon and Intel.

"Global macroeconomic factors, particularly the US Federal Reserve's stance on interest rates and fluctuating crude oil prices, continue to heavily influence domestic market sentiment. While large-cap debuts like Jio Platforms show strong investor appetite, companies across manufacturing and aviation are navigating distinct operational hurdles including high fuel costs and currency volatility. For businesses and investors alike, maintaining a balanced approach while closely monitoring quarterly execution and cash flows remains critical in the current economic environment." — Dr. Shishir Gupta, Founder & CEO, StartupLanes