India’s benchmark indices declined on Wednesday as cautious investor sentiment prevailed ahead of the US Federal Reserve’s policy decision later in the day.
The Sensex dropped 502.25 points, or 0.62 percent, to close at 80,182.20, while the Nifty fell 137.15 points, or 0.56 percent, to settle at 24,198.85.
On the Bombay Stock Exchange (BSE), 1,447 shares ended in the green, while 2,558 declined, and 94 remained unchanged.
In the Sensex pack, the top gainers included TCS, Sun Pharma, Tech Mahindra, HCL Tech, M&M, ITC, and Infosys, while Tata Motors, Power Grid, NTPC, JSW Steel, ICICI Bank, L&T, Bajaj Finance, HDFC Bank, Axis Bank, and SBI were among the major laggards.
Vinod Nair, Head of Research at Geojit Financial Services, said that market sentiment remained subdued ahead of the Federal Open Market Committee (FOMC) meeting, with investors wary of potential shifts in policy and tariffs under the incoming US administration. The US Federal Reserve, which had been maintaining steady interest rates, implemented a total of 75 basis points in rate cuts during its September and November reviews.
Nair pointed out that concerns over India’s high market valuation have contributed to investor caution. The valuation is seen as exceeding current earnings growth, which has decelerated over the past two quarters.
Additionally, India’s trade deficit for November, which reached a record USD 37.84 billion due to increased imports, further weighed on market sentiment.
(With inputs from agencies)
