India’s benchmark indices opened flat on Thursday, following a sharp rally in the previous session driven by Donald Trump’s victory in the U.S. presidential election. Investors adopted a cautious stance ahead of the U.S. Federal Reserve’s interest rate decision, which is expected later in the day.

The BSE Sensex fell by 139.48 points, or 0.17 percent, to open at 80,238.65, while the Nifty dropped 53.00 points, or 0.22 percent, to 24,431.00.

Market breadth remained positive, with 1,559 shares advancing, 803 shares declining, and 132 remaining unchanged.

Market analysts believe Trump’s return to office could lead to significant shifts in global markets, affecting both domestic and international sectors.

V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said that Trump’s victory, combined with a Republican majority in the Senate, could set the stage for significant economic policy changes in the coming months.

“His pro-business stance under the ‘America First’ initiative could boost the U.S. economy, but any aggressive tariff policies—like a potential 60% tariff on Chinese goods—may stoke inflation and prompt the Federal Reserve to reconsider its rate cut strategy,” Vijayakumar said, adding that such moves could trigger volatility in global markets.

Sectoral indices on the National Stock Exchange displayed mixed results. Nifty Auto, Pharma, IT, and FMCG posted gains, while sectors like Nifty Bank, Metal, and Private Bank saw declines.

In Asia, markets were also mixed. Japan’s Nikkei fell 0.4 percent, while Hong Kong’s Hang Seng rose 0.68 percent . Other indices, such as Taiwan’s Weighted Index, South Korea’s KOSPI, and China’s Shanghai Composite, also registered gains, benefiting from the positive global sentiment following Trump’s win. Meanwhile, U.S. markets saw a strong rally, with the S&P 500 and Nasdaq both surging over 2 percent after the election results.

(With ANI input)