NextFin news, On Wednesday, September 24, 2025, global stock markets experienced a downturn following cautionary comments from U.S. Federal Reserve Chair Jerome Powell. Powell highlighted concerns over elevated asset valuations and the risk of stagflation, unsettling investors and triggering broad-based selling across sectors.
In India, the benchmark indices Sensex and Nifty opened lower in Mumbai, with the Sensex down approximately 289 points (0.35%) at 81,813 and the Nifty down 87 points (0.35%) at 25,082 as of early trade. The decline was driven by weak global cues, ongoing foreign fund outflows, and concerns over U.S. visa restrictions impacting market sentiment.
Sectorally, most indices traded in the red except for PSU banks, which gained 0.37%. The Nifty Auto, IT, and Consumer Durables indices were among the top losers, falling by 0.71%, 0.66%, and 0.70% respectively. Major stock losers included Hero MotoCorp, Titan Company, Tech Mahindra, Tata Motors, and ICICI Bank, while gainers included Trent, SBI, Asian Paints, Maruti Suzuki, and ONGC.
Powell's remarks underscored that asset prices, including stocks, gold, silver, and cryptocurrencies like bitcoin, remain fairly highly valued. He also reiterated the challenges facing the Federal Reserve in balancing inflation and employment objectives, signaling a complex policy environment ahead.
U.S. markets closed lower on Tuesday night, with the Nasdaq down 0.95%, the S&P 500 down 0.55%, and the Dow Jones down 0.19%. Asian markets showed mixed performance on Wednesday morning, with China's Shanghai and Shenzhen indices gaining modestly, while Japan's Nikkei and South Korea's Kospi declined.
In Malaysia, Bursa Malaysia opened lower, mirroring Wall Street's decline after Powell's comments. Despite a cautious start, analysts remain optimistic about the local bourse's outlook, citing expectations of a Fed pivot, Malaysia's fiscal reforms, and resilient domestic flows.
Investor sentiment was further dampened by concerns over proposed changes to the U.S. H-1B visa system, which could affect Indian IT and other sectors reliant on skilled foreign workers. The Indian rupee also weakened against the U.S. dollar, trading near record lows amid these pressures.
Overall, the global equity markets on Wednesday reflected heightened caution as investors digest Powell's warnings and await further economic data and Fed communications for clearer policy direction.
Sources: Munsif Daily (2025-09-24), CNBC TV18 (2025-09-24), Business Today Malaysia (2025-09-24), Moneycontrol (2025-09-24), Malay Mail (2025-09-24)
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