The Indian equity markets faced a weak and muted start to Thursday's trading session on June 19, 2025, influenced significantly by subdued global sentiment, the outcome of the US Federal Reserve's policy meeting, and escalating geopolitical tensions in the Middle East. Both the Nifty50 and BSE Sensex opened in the red, with Nifty down 13.1 points at 24,798.95 and Sensex down over 67 points at 81,377 at the open. This continued the trend from Wednesday, where both indices closed lower, with Sensex and Nifty both ending marginally in the red.

A primary driver of caution globally was the US Federal Open Market Committee (FOMC)'s decision to keep interest rates steady at 4.25 per cent to 4.5 per cent, marking the sixth consecutive meeting without a change. While this was largely expected, the Fed's cautious tone on persistent inflation and its revised forecasts dampened sentiment. Fed Chair Jerome Powell highlighted a potential uptick in inflation due to proposed tariffs by Donald Trump, noting that tariff effects on inflation could be persistent. Despite heightened uncertainty, Powell stated the economy is in a solid position. The 'dot plot' indicated expectations for two rate cuts by the end of 2025, though officials were more divided, with some predicting no cuts this year and 25 basis points worth of cuts in 2026.

Geopolitical uncertainties, particularly the escalating Israel-Iran conflict now in its seventh day, heavily weighed on investor confidence. Reports of potential US military involvement, following President Trump's mixed signals and warnings of