Sensex drops over 500 points as Fed signals rate-cut pause

Indian stock markets took a sharp hit when the Federal Reserve (Fed) indicated that its recent rate cut may be the last of 2025. The Sensex tumbled more than 500 points and the Nifty 50 slid below the 26,900 mark, driven by foreign-institution outflows and cautious investor sentiment. Key sectors including banking and IT led the weakness, while markets continued to monitor global trade flows and central-bank messaging. The drop ended a streak of relative calm in Indian equities and could signal renewed volatility ahead.