Sensex Falls 560 Points on Fed Pause, Rupee Weakness, Pre-Budget Caution.
Indian equities opened weak on Tuesday and extended losses as global and domestic uncertainty weighed on investor sentiment. At 10:10 am, the Sensex was down 560 points to 81,784, while the Nifty slipped 158 points to 25,184, with broad-based selling across major sectors.
Fed Pause Hits Risk Appetite
The US Federal Reserve kept policy rates unchanged at 3.5–3.75%, signaling no near-term cuts. The move strengthened the dollar, pushed US bond yields higher, and prompted foreign investors to pull funds from emerging markets, including India.
Foreign Outflows and Weak Rupee Add Pressure
Continued FPI selling and a rupee near record lows intensified losses, especially in financials, IT, and FPI-heavy stocks. Mid- and small-cap shares also underperformed as traders moved away from riskier bets.
Pre-Budget Uncertainty
With the Union Budget and Economic Survey looming, investors trimmed positions amid concerns over taxation, fiscal consolidation, and spending priorities.
Weak Q3 Earnings
Mixed corporate results for the December quarter reinforced cautious sentiment.
Analysts say the current slide is sentiment-driven, with volatility likely to continue until the Fed and Budget provide clearer direction.
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