Domestic markets are likely to open flat to negative on Thursday amid mixed global cues. As the US Federal Reserve sent hawkish tones while retaining interest rates, analysts expect markets to remain volatile. With Friday being a market holiday (Maharashtra Day), traders are unlikely to carry their positions, especially in times of uncertainty, said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth.
“While domestic indices are holding near key levels, the broader setup remains fragile, shaped by elevated oil prices, global uncertainty, and a high-impact event calendar,” said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth.
Gift Nifty at 24,145 indicates a gap-down opening of about 80-90 points. Asian markets have opened largely in the red, mirroring weakness across Wall Street. The persistence of geopolitical tensions, particularly around supply disruptions, is keeping risk appetite subdued and markets highly sensitive to headlines, added Hariprasad.
Facing inflationary pressures linked to the Iran conflict and ongoing worries about the labour market, the Federal Open Market Committee decided to hold the federal funds rate steady at 3.5 per cent to 3.75 per cent. The Federal Reserve left its benchmark interest rate unchanged for the third straight meeting but indicated that rate cuts may still be on the horizon in the coming months—a stance that drew strong dissents among policymakers.
Ajitabh Bharti, Executive Director and Co-founder, CapitalXB, said the US Federal Reserve’s decision to hold rates at 3.50 per cent–3.75 per cent is a double-edged sword for Indian investors. “While it prevents a massive sell-off, the lack of a rate cut means Foreign Institutional Investors (FPIs) might remain hesitant to move capital back into Indian equities until US yields soften,” he said.
Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth-tech firm, said Indian equity markets are likely to trade with a cautious bias in the near term, with volatility expected to remain elevated amid a confluence of global macroeconomic factors and persistent geopolitical tensions. “The Federal Reserve has kept interest rates unchanged, signalling a data-dependent stance as it balances inflation risks against growth concerns, even as uncertainty remains elevated amid the ongoing West Asia conflict.”