CHENNAI: Indian equity markets traded weak in the morning session on Thursday, October 30, with investors showing caution after the US Federal Reserve signalled a pause following its recent rate cut. At around 11:30 AM IST, the benchmark indices were under pressure, with the Nifty 50 slipping below the 26,000 mark and the Sensex falling over 300 points, reflecting profit-booking and subdued global cues.
Market sentiment remained range-bound as traders weighed the Fed’s cautious stance and its implications for global liquidity. The US central bank’s decision to cut rates by 25 basis points was largely expected, but its commentary on maintaining a restrictive stance dampened investor enthusiasm. Asian markets also traded mixed, adding to the uncertain tone on Dalal Street.
Back home, investors continued to focus on key domestic data and corporate updates. Analysts said the broader market outlook remains stable, supported by India’s resilient macroeconomic fundamentals. A recent Reuters poll projected the Indian economy to grow by about 6.7% this fiscal year, driven by strong domestic demand and government capital spending.
On the sectoral front, financials and IT stocks saw mild selling pressure, while select auto and FMCG counters offered some support. The Reserve Bank of India’s proposed limits on banks’ exposure to capital markets and acquisition financing weighed slightly on banking shares. Traders also stayed cautious ahead of month-end derivative expiry and the release of fresh corporate results later in the week.
Technically, the Nifty faces resistance around 26,100–26,300 levels, while strong support lies near 25,900–25,800. Analysts noted that a sustained move below the support zone could trigger further weakness, while a rebound above resistance may revive bullish momentum.
Foreign institutional investor (FII) flows remain a key factor to watch. After steady inflows in recent weeks, any reversal could add to short-term volatility. Global developments, particularly US–China trade signals and bond yield trends, are also likely to influence the afternoon session.
Overall, the market tone at midday was one of consolidation after recent gains. With global uncertainty and selective stock movement, traders preferred to stay defensive, while long-term investors appeared inclined to accumulate quality names on declines.
