Indian Stock Market Closes Lower Ahead of Crucial Global Policy Announcements
Click to start listening
Mumbai, Dec 17 (NationPress) In light of significant policy announcements expected from the US Federal Reserve, the Indian stock market finished in the negative territory on Tuesday as declines were noted across the PSU bank, automotive, IT, financial services, pharmaceutical, FMCG, metal, and real estate sectors within Nifty.
By the end of trading, the Sensex closed at 80,684.4, down 1,064.12 points or 1.30 percent, while the Nifty concluded at 24,336, a drop of 332.25 points or 1.35 percent.
Market analysts indicate that a sense of widespread pessimism has permeated all sectors in advance of critical policy decisions from the US Federal Reserve, as well as the Bank of Japan and the Bank of England.
Although the market has largely anticipated a 25 basis points cut from the US Federal Reserve, it remains alert for any potentially hawkish signals, according to experts.
The Nifty Bank index finished at 52,834.80, down 746.55 points or 1.39 percent.
The Nifty Midcap 100 index closed at 59,101.90, having decreased by 341.15 points or 0.57 percent.
Additionally, the Nifty Smallcap 100 index ended at 19,398.45, down 132.60 points or 0.68 percent.
On the Bombay Stock Exchange (BSE), 1,578 shares advanced while 2,440 shares declined, with 89 shares remaining unchanged. In terms of sector performance, there was some buying activity within the media sector of Nifty.
Among the Sensex constituents, top losers included Bharti Airtel, IndusInd Bank, JSW Steel, TCS, Asian Paints, L&T, Bajaj Finserv, Reliance, Nestle India, HDFC Bank, Maruti, M&M, Tata Steel, and Power Grid. Only ITC emerged as a top gainer.
The Indian rupee traded relatively stable near 84.90 as market participants remained focused on the Fed's final policy announcement for the year, scheduled for December 18.
"A dovish stance could lead to a decline in the dollar index, offering some relief for the rupee. However, any uncertain or hawkish comments might boost the dollar and keep market participants bearish on the rupee. The rupee is expected to fluctuate between 84.75 and 85.05," stated Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
