Market Opens Weak After Fed Statement; Nifty Holds Above 26,000, Global Cues Mixed

The Indian markets are set for a cautious start as Gift Nifty indicates a weak opening of around 92–93 points down, trading near 26,162 — still comfortably above the crucial 26,000 mark.

Asian markets are trading mixed with a mildly positive bias, while Dow Jones Futures are up about 69 points, signaling limited optimism across global equities.

Why Did Gift Nifty Turn Red Overnight?

After the recent upbeat momentum, many investors are wondering why Gift Nifty slipped into negative territory today. The key trigger came from the US Federal Reserve meeting held overnight.

While the Fed did announce a rate cut this time, Chair Jerome Powell’s comments dampened sentiment. He made it clear that investors should not expect another rate cut in the December meeting, signaling a more cautious outlook ahead.

This clarification immediately led to weakness in US and Asian markets, and the impact spilled over to Indian equities this morning.

“No Bubble in US Markets, But India Looks Overvalued”

Interestingly, Powell also addressed concerns around a possible AI-driven market bubble. He asserted that AI companies in the US are generating real earnings, unlike the dot-com bubble era. In contrast, he hinted that valuations in India appear more inflated, citing IPOs like Lenskart as examples of overenthusiasm.

He added that the current US growth may be partially inflated due to higher tariffs, which have increased inflation and GDP numbers artificially. Powell admitted that if tariffs ease, US economic growth could cool down, reinforcing his view that a December rate cut is unlikely.

Indian Markets: Resistance Near 26,200

The Nifty 50 closed above the 26,000 mark in the previous session — a technically positive sign. However, analysts caution that resistance remains between 26,000 and 26,200, where the market could consolidate.
Until Nifty breaks decisively above 26,200, traders are advised to stay cautious and avoid aggressive positions.

The Bank Nifty added 171 points to close at 58,385, hovering close to its lifetime highs. Key resistance levels are seen near 58,500–58,850, while support lies at 58,200.

Institutional Flow: FIIs Book Profits, DIIs Support

Foreign Institutional Investors (FIIs) were net sellers to the tune of ₹2,540 crore, while Domestic Institutional Investors (DIIs) bought ₹5,692 crore worth of equities. Market experts believe this is typical during expiry periods when FIIs adjust or roll over their positions.

Volatility and Derivatives Data

The India VIX has eased to around 12, a positive sign for option buyers. The Put-Call Ratio (PCR) improved to 1.14 from 0.98, indicating a mildly bullish sentiment.

Corporate Earnings Highlights

Several key earnings were released yesterday:

Larsen & Toubro (L&T): Profit up 16%, revenue up 10%; margins slightly down from 10.3% to 10%.
LIC Housing Finance: Profit up 2%, NII up 3%, though margins narrowed slightly.
BEL: Profit surged 253%, revenue up 14.1% — a strong performance.
PB Fintech: Profit up 164%, revenue up 38.2%.
NTPC Green Energy: Profit jumped 1,330%, revenue up 21.5%.
Sequent Scientific: Profit up 144%, revenue up 25%.
Brigade Enterprises: Profit up 37%, revenue up 29%.

Meanwhile, UBL’s profit slumped 64.8%, MGL’s profit fell 33.3%, and Cello World’s profit declined 53.3%, highlighting margin pressure across select sectors.

Dilip Buildcon announced another major order worth ₹307 crore from South Eastern Railways, following a large order earlier this week.

Wipro also signed a multi-year strategic deal with Honey’s brand, focusing on AI-powered IT and cybersecurity transformation.

Stocks to Watch Today

Investors should keep an eye on companies announcing results today, including:
ITC, NTPC, Canara Bank, Union Bank, Aditya Birla Capital, Adani Power, Dabur, DLF, Birla Cable, Coromandel International, Dr. Agarwal’s Health Care, IEX, Lodha Developers, Motilal Oswal, Nippon India, and Pidilite Industries.

Outlook

Despite the near-term volatility, analysts emphasize that as long as Nifty holds above 26,000, the broader trend remains positive. However, traders should maintain a light position and wait for a clear breakout above 26,200 for directional confirmation.