Indian stock markets are expected to open on a cautious note, mirroring global trends after the US Federal Reserve decided to keep interest rates unchanged. Gift Nifty indicated little movement, while Asian markets struggled, following losses on Wall Street.

On Wednesday, Indian markets saw a positive session, with Sensex climbing 631.55 points to close at 76,532.96 and Nifty 50 rising 205.85 points to 23,163.10. Gains in IT and banking stocks fueled optimism, supported by a relief rally in mid- and small-cap stocks after recent corrections. However, concerns persist due to foreign institutional investor (FII) outflows and the upcoming Budget announcement.

Meanwhile, global markets reacted to key developments. The Dow Jones dropped 140 points, the S&P 500 lost 29 points, and the Nasdaq fell over 106 points as investors assessed the Fed’s stance. Fed Chair Jerome Powell signaled patience in lowering rates, citing the need for further inflation control.

Tech earnings also influenced market sentiment. Microsoft’s stock declined nearly 5% as its Azure cloud business posted weaker-than-expected growth. Tesla, despite lower-than-expected profits, saw a 4.16% after-hours rally, buoyed by expectations of stronger vehicle sales in 2025. Meta exceeded revenue estimates but issued a cautious forecast for the next quarter.

Additionally, gold prices remained near record highs as Powell’s comments dimmed hopes of a rate cut. With market uncertainty prevailing, investors remain watchful of upcoming economic cues and corporate earnings.