Indian Markets Flat as Profit-Taking Offsets Metal Sector Gains
India’s benchmark indices were largely unchanged on Thursday as persistent profit-taking outweighed gains in metal stocks following the U.S. Federal Reserve’s 25-basis-point rate cut. The Nifty 50 inched up 0.04% to 25,770.05, while the Sensex dipped 0.01% to 84,381.84 after both indices briefly rose at the open. Most major sectors declined, even as mid-caps and small-caps posted modest gains.
Metal stocks stood out, rising 0.8% as global metal prices strengthened due to a weaker U.S. dollar, making commodities cheaper for international buyers. Analysts said the Fed’s rate cut signalled shifting concerns toward slowing growth and labour softness. However, the move was not enough to offset ongoing pressure on the Indian rupee, driven by higher tariffs and elevated U.S. yields.
The broader market sentiment remained cautious as foreign portfolio investors continued to sell Indian equities—offloading $1.56 billion so far in December—dragging the rupee to record lows. Uncertainty over India-U.S. trade discussions and currency weakness prompted traders to book profits. Among notable movers, IndiGo fell 3.3% after trimming its quarterly forecasts, while Hindustan Zinc and Vedanta gained following a surge in global silver prices.
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