MUMBAI: Indian shares fell on Thursday as investor sentiment cooled after Federal Reserve Chair Jerome Powell raised doubts over a December rate reduction following a 25-basis-point cut, while caution over the US-China deal weighed on other Asian markets.
The Nifty 50 fell 0.68 percent to 25,877.85 and the BSE Sensex lost 0.7 percent to 84,404.46.
Despite the drop on the day, the Nifty and Sensex have gained about 5.2 percent each in October and are trading nearly 1.5 percent and 1.8 percent, respectively, below their all-time highs hit in September 2024.
Powell’s statements, which indicated that Wednesday’s cut could likely be the last one this year due to the lack of official data during the ongoing federal government shutdown, prompted some caution, according to analysts. Other Asian markets fell 0.4 percent as investors worried that the tariff detente between the US and China could prove fleeting. US President Donald Trump said he had made a trade deal with Chinese President Xi Jinping on rare earths and tariffs.