December 17, 2024 - Indian markets opened sharply lower when trade began this morning as traders remain cautious ahead of the US Federal Reserve two-day meeting scheduled for today and tomorrow. A steep decline is being seen in the benchmark indices for the second straight day today. Heavyweights like Reliance Industries, HDFC Bank and Infosys are instrumental in dragging the markets down because of mixed global cues.

At 12:15 pm, Nifty was down 284 points at 24,384 while Sensex was trading at 80,804, down 945 points.

Investors in India anxiously await the outcome of the Federal Open Markets Committee (FOMC) meeting later today for the last time this year. Wall Street closed mixed yesterday with Dow Jones falling for the eight straight day  and Nasdaq ending at a record high.

The US Fed 2025 rate cut plans have been on the radar of the Indian stock market investors for some time now following the recent US data which indicated persistent inflation and economic strength. Market analysts believe a 25-basis point rate cut is likely to be on the cards.

Global markets, including India, have always experienced volatility whenever US Federal Reserve decisions have been in the offing. A tightening of monetary policy or hints at higher interest rates by the Fed could cause capital outflows from Emerging Markets like India thereby leading to volatility and weakness.