Sensex Declines Ahead of US Federal Reserve Rate Decision, Nifty at 24,198

Mumbai, Dec 18 (NationPress) The domestic benchmark indices ended lower on Wednesday due to weak global cues as market sentiment stayed cautious ahead of the crucial US Fed meeting.

US Fed Chair Jerome Powell is expected to unveil the policy statement late on Thursday (US time) during the Federal Open Market Committee (FOMC) meeting.

Experts suggest that the Indian market is witnessing a breakdown in the early Santa Claus rally, with the downturn being more significant in India compared to developed markets, largely due to the rapid strengthening of the dollar.

Cautious market sentiment is further compounded by India's premium valuation, which is considerably above the current earnings growth trajectory that has decelerated over the past two quarters.

On Wednesday, substantial selling was evident in the media, PSE, PSU Bank, financial services, metal, private banking, and commodities sectors of the Nifty towards the close of trading.

At the end of the day, the Sensex closed at 80,182.20, down by 502.25 points, or 0.62 percent, while the Nifty finished at 24,198.85, down by 137.15 points, or 0.56 percent.

The Nifty Bank index closed at 52,139.55, declining by 695.25 points or 1.32 percent. The Nifty Midcap 100 index wrapped up at 58,723.25 after falling 378.65 points or 0.64 percent.

The Nifty Smallcap 100 index concluded at 19,230.35, down by 168.10 points or 0.87 percent.

On the Bombay Stock Exchange (BSE), 1,447 shares finished in the green while 2,558 closed in the red, with no change observed in 94 shares.

From a sectoral perspective, buying interest was noted in the pharma, healthcare, and IT sectors of the Nifty.

Within the Sensex, notable losers included Tata Motors, Power Grid, NTPC, JSW Steel, ICICI Bank, L&T, Bajaj Finance, HDFC Bank, Axis Bank, and SBI. Conversely, the top gainers were TCS, Sun Pharma, Tech Mahindra, HCL Tech, M&M, ITC, and Infosys.