Sensex falls 436 points on selling ahead of US Fed’s policy decision

Mumbai: Stock markets closed lower for the second straight day on Tuesday, with benchmark BSE Sensex declining by 436 points as investors booked profit ahead of the US Federal Reserve’s apolicy decision.

The 30-share BSE Sensex dropped 436.41 points, or 0.51 per cent, to close at a nearly two-week low of 84,666.28. During the day, the barometer plunged by 719.73 points, or 0.84 per cent, to hit an intraday low of 84,382.96 as blue-chip private banks, oil and IT shares retreated.

The 50-share NSE Nifty dropped by 120.90 points, or 0.47 per cent, to settle at 25,839.65. In the intraday session, it depreciated by 232.55 points, or 0.89 per cent, to hit a low of 25,728.

Among the Sensex constituents, Asian Paints, Tech Mahindra, HCL Technologies, Tata Steel, Maruti Suzuki India, Sun Pharmaceuticals, Tata Consultancy Services, ICICI Bank, Bajaj Finance, UltraTech Cement, Mahindra & Mahindra and Tata Motors Passenger Vehicles were the laggards.

However, Eternal, Titan, Adani Ports, Bharat Electronics Ltd, State Bank of India, Bajaj Finserv, NTPC and Bharti Airtel were among the gainers.

The US Federal Reserve is set to begin its two-day policy meeting later on Tuesday, where the central bank’s Federal Open Market Committee (FOMC) will decide on key benchmark interest rates for the world’s largest economy.

Broader markets rebounded with BSE midcap gauge rising by 0.60 per cent and smallcap index advancing 1.27 per cent.

Among sectoral indices, Focussed IT declined the most by 1.18 per cent, Information Technology by 0.89 per cent, Teck by 0.72 per cent, Auto by 0.63 per cent, Metal by 0.34 per cent, and Consumer Durables and Energy fell by 0.16 per cent each. On the other hand, Capital Goods, Power, Industrials, Telecom, Consumer Discretionary, FMCG, Utilities were among the gainers.

As many as 2,550 stocks advanced, while 1,625 declined and 156 remain unchanged on the BSE.

Meanwhile, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 655.59 crore on Monday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 2,542.49 crore, according to exchange data.

Brent crude, the global oil benchmark, fell 0.27 per cent to $62.33 per barrel.

On Monday, the 30-share BSE Sensex plunged by 609.68 points to close at 85,102.69. Snapping a two-day gaining streak, the 50-share NSE Nifty declined by 225.90 points to settle at 25,960.55.