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US Fed Decision Looms: Indian Stocks Brace for Volatility
10 Dec
Summary
- Indian equities traded cautiously on Wednesday, December 10, 2025, after two days of losses.
- Investors await the US Federal Reserve's policy decision and potential new US tariffs on rice.
- Persistent FII outflows and a weakening Indian rupee added to market pressure.
Indian stock markets adopted a cautious stance on Wednesday, December 10, 2025, following a consecutive two-day decline. Investors exhibited apprehension ahead of the US Federal Reserve's crucial policy decision, which is anticipated to significantly influence global markets. The Nifty 50 dipped below 25,900, and the Sensex experienced a notable drop of over 430 points.
Several factors contributed to the prevailing uncertainty. Concerns about potential new US tariffs on Indian rice added to market jitters, alongside persistent outflows from foreign institutional investors (FIIs). The Indian rupee also weakened against the US dollar, further impacting investor sentiment. While IT, auto, and metal sectors faced losses, sectors like realty and telecom showed gains, and the midcap and small-cap indices provided some support.
Analysts anticipate the Nifty to trade within a consolidation range of 25,700-26,200, with the US Federal Open Market Committee (FOMC) meeting outcome and India's Consumer Price Index (CPI) data being key short-term drivers. The Bank Nifty is also expected to continue its consolidation phase, with support levels identified around 58,200-58,600.
