June 19 — Indian equity markets opened on a cautious note Thursday as investors closely tracked global cues following the U.S. Federal Reserve’s policy announcement and ongoing geopolitical unrest in the Middle East.
The BSE Sensex was down by 34 points at 81,410 in early trade, while the Nifty 50 slipped 9 points to hover near 24,803. Traders remained largely on the sidelines amid limited fresh domestic triggers, with attention focused on external developments.
Fed’s Pause, But with a Warning
The U.S. Federal Reserve held interest rates steady in its latest meeting, as widely expected. However, it struck a slightly hawkish tone, signaling two potential rate cuts later this year—fewer than what many on Wall Street had hoped for. The cautious stance weighed on global markets, with Asian equities seeing mild declines and setting the tone for Indian shares.
“While the Fed did not raise rates, the tone wasn’t as dovish as markets would have liked. That’s keeping risk appetite in check for now,” said Aniruddh Sen, head of equity strategy at a Mumbai-based brokerage.
Geopolitical Worries Add to Jitters
Investor sentiment was further dampened by rising tensions in the Middle East. The ongoing military standoff between Israel and Iran entered its second week, sparking concerns about oil supply disruptions. Brent crude hovered around $89 per barrel, putting pressure on oil-importing economies like India.
The Indian rupee also weakened slightly to ₹86.53 against the U.S. dollar in early trade, reacting to global uncertainty and higher crude prices.
Sector Watch: IT and Banking Under Pressure
Technology stocks took a hit as the cautious Fed outlook raised concerns over spending in key U.S. markets. Infosys, TCS, and HCL Tech were all trading lower by up to 1%. Banking stocks also struggled, with HDFC Bank, ICICI Bank, and Axis Bank showing mild declines.
In contrast, some strength was seen in the auto and FMCG sectors. Maruti Suzuki, ITC, and Hindustan Unilever were among the top gainers in the Nifty pack.
Broader Market and Technical Outlook
The broader markets were mixed. The Nifty Midcap 100 and Smallcap 100 were down around 0.3% each, indicating a cautious tone across the board. Market breadth on the NSE was slightly negative, with declining shares outnumbering gainers.
Technical analysts noted that the Nifty is likely to remain range-bound between 24,700 and 25,000 in the short term. “A clear breakout or breakdown will depend on global cues and foreign institutional activity,” said Vaishali Parekh, a technical analyst at Prabhudas Lilladher.
Looking Ahead
With no major domestic events on the horizon, markets are likely to continue tracking global signals, particularly U.S. economic data and any further developments in the Middle East.
For now, the Indian stock market remains in consolidation mode, with investors opting to wait and watch.
