Benchmark indices Sensex and Nifty fell in early trade on Wednesday amid foreign fund outflows and caution ahead of the US Fed’s interest rate decision.
The 30-share BSE benchmark Sensex fell 149.31 points to 80,535.14 in early trade. The NSE Nifty plunged 62.9 points to 24,273.10.
Tata Motors, Power Grid, Larsen & Toubro, Adani Ports, Maruti and NTPC were the laggards from the blue chip pack of 30 shares.
Reliance Industries, HCL Technologies, Tech Mahindra, Hindustan Unilever, Asian Paints and ITC have increased.
Foreign institutional investors (FIIs) offloaded equity worth Rs 6,409.86 crore on Tuesday, according to exchange data.
Closer market formation weakened as FIIs led sellers back into the rally. Yesterday’s figure of Rs 6,410 crore selling by large FIIs in the cash market indicates more selling in the market bounce.
“The focus of world markets today is the Fed decision expected tonight. A 25 bps rate cut has been priced-in by the market. So, the focus will be on the Fed commentary,” said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
In the Asian market, the prices of Seoul, Shanghai and Hong Kong have increased, while the prices of Tokyo have decreased.
Wall Street ended lower on Tuesday.
Global oil benchmark Brent crude rose 0.04 percent to $73.22 a barrel.
Falling for the second straight day, the benchmark BSE settled down 1,064.12 points, or 1.30 per cent, at 80,684.45 on Tuesday. The Nifty fell 332.25 points or 1.35 percent to 24,336.
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