Sensex, Nifty decline despite US Fed rate cut; investors focus on upcoming Trump-Xi talks

Benchmark equity indices traded lower on Thursday despite the US Federal Reserve’s widely anticipated rate cut.

As investors remained cautious ahead of the crucial meeting between US President Donald Trump and Chinese President Xi Jinping. Market participants are closely watching whether the talks could yield progress on a potential trade agreement.

At 9:23 am, the S&P BSE Sensex was down 251.52 points at 84,745.61, while the NSE Nifty50 slipped 81.55 points to 25,972.35. Broader markets also opened weak amid cautious sentiment and profit booking after recent gains.

Among Sensex constituents, L&T, Tata Motors Passenger Vehicles (TMPV), Eternal, and UltraTech Cement were among the early gainers, whereas Sun Pharma, Bharti Airtel, and ITC traded lower.

According to Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, the weak start reflected foreign investor selling and subdued global cues. He noted that FIIs were net sellers in the previous session, while Fed Chair Jerome Powell’s comments signaled a more cautious stance, reducing hopes of another rate cut in December.

Tapse, however, added that Nifty holding above 26,000 indicates resilience in domestic markets, supported by expectations of strong quarterly results from companies such as ITC, Cipla, Maruti, and Pidilite.

Dr. V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said that investor attention has now shifted to the Trump-Xi meeting, which could determine the next direction for global equities. A positive outcome, he said, could revive market optimism and potentially end prolonged trade tensions.

On the domestic front, Vijayakumar highlighted the Chief Economic Adviser’s projection that India’s GDP growth could reach 7%, driven by robust consumption trends and an uptick in capital expenditure — evident from L&T’s recent order inflows. He noted that while the market retains an upward bias, a sharp rally appears unlikely in the near term.

Technically, analysts said the Nifty continues to show a sideways-to-positive trend as long as it holds above the 25,900–26,000 support zone, with resistance seen near 26,100–26,200. A decisive breakout above that range could lift the index toward 26,300–26,400 levels.

Meanwhile, Bank Nifty has key support at 58,100–58,200 and resistance at 58,600–58,700, with a move beyond 58,700 likely to extend gains toward 59,000.

On the flows side, Foreign Institutional Investors (FIIs) sold equities worth ₹2,540.2 crore on October 30, while Domestic Institutional Investors (DIIs) purchased shares worth ₹5,692.8 crore, indicating steady domestic support amid global uncertainty.