Sensex drops 500 pts, Nifty below 25,800 on Fed jitters, Trump tariff threat

• Indian equity benchmarks (Sensex, Nifty) fell for a second consecutive session, with Sensex dropping over 600 points and Nifty below 25,800.
• Market decline was driven by caution ahead of the US Federal Reserve's policy announcement and potential rate cuts.
• US President Trump's tariff threat on India's rice exports added pressure, causing shares of rice exporters to fall.
• Other contributing factors included a weakening rupee, persistent FII selling, and weak global market cues.
• Broader markets (mid and smallcap) and IT shares also experienced significant declines.

Why It Matters: US Fed uncertainty and Trump's tariff threats are causing Indian market instability.