Indian Markets Open Lower Amid Caution Ahead of U.S. Federal Reserve Meeting

Indian equity benchmarks slipped on Tuesday as heavyweight financial stocks and Reliance Industries dragged the indices lower. Investors remained cautious ahead of the U.S. Federal Reserve's December 18 meeting, closely monitored for insights into its future interest rate cut trajectory.

At 09:20 a.m. IST, the NSE Nifty 50 declined by 0.3% to 24,599 points, while the BSE Sensex shed 0.3% to 81,492.02.

Out of the 13 major sectors, 10 traded in the red.

Key Drags on the Market

HDFC Bank fell 0.4% following a warning letter from the Securities and Exchange Board of India (SEBI). The market regulator alleged that the bank’s disclosures surrounding the resignation of a senior employee were non-compliant with specific provisions.

Reliance Industries declined nearly 1%, pulling the energy index down by 0.5%.

On a positive note, broader markets, including small- and mid-cap stocks, showed marginal gains, providing some support.

Global Factors in Focus

The Federal Reserve is widely anticipated to cut interest rates by 25 basis points during its final policy meeting of the year on Wednesday.

Investors are particularly keen to understand the Fed’s projections for 2025 and 2026, as well as any signals on scaling back rate cuts amidst potential inflationary pressures under the incoming Donald Trump administration.