Indian Markets Brace For Volatile Trade Ahead Of US Fed Outcome

Indian stock markets are poised for a cautious session on December 10, 2025, as traders await the outcome of the US Federal Reserve’s policy meeting later in the day. The Fed’s stance on interest rates will be crucial in shaping global risk sentiment, with Indian equities tracking international cues closely.  

Key highlights from the announcement include  

• Gift Nifty was trading around 25,902, nearly 58 points lower than the previous close, signaling a weak start.  
• On Tuesday, Sensex closed at 84,666.28, down 436.41 points or 0.51%, while Nifty 50 settled at 25,839.65, down 120.90 points or 0.47%.  
• Sectoral trends were mixed, with IT, auto, and metals witnessing declines of 0.3–1%, while realty, telecom, capital goods, and PSU banks gained 0.5–1%.  
• Broader markets showed resilience, with the midcap index rising 0.3% and the small-cap index gaining 1.1%.  
• Global markets remained subdued, with Asian indices like CSI 300, Hang Seng, Nikkei, and KOSPI trading lower ahead of the Fed decision.  
• US equities closed mixed overnight, with the Dow Jones down 0.38%, S&P 500 slipping 0.09%, and Nasdaq gaining 0.13%.  
• Technical charts for Nifty 50 formed a Doji-like candle, reflecting indecision among traders and signaling potential volatility.  
• Analysts expect cautious trading until clarity emerges from the Fed’s policy stance, with focus on inflation data and rate outlook.  

The cautious mood reflects the balancing act investors face between domestic resilience and global uncertainties. While broader markets continue to show strength, headline indices remain under pressure from global cues. The Fed’s decision will be a key determinant of near-term direction, influencing foreign inflows, currency trends, and sectoral performance in India.  

Sources: Goodreturns, Business Standard, Livemint