The market’s short-term direction is likely to be influenced by INR-USD movements. (AI image)
Stock market today: Nifty50 and BSE Sensex, the Indian equity benchmark indices, tanked in trade on Tuesday for the second consecutive day as investors reduced positions before the US Federal Reserve’s policy announcement.The NSE Nifty fell by 120.90 points, or 0.47 per cent, closing at 25,839.65. During trading, it decreased by 232.55 points to reach 25,728. The BSE Sensex declined by 436.41 points, or 0.51 per cent, ending at a near two-week low of 84,666.28. The index experienced an intraday decrease of 719.73 points, reaching 84,382.96 as major private banks, oil and IT shares declined.Market experts indicated that continuous foreign fund withdrawals and unfavourable global indicators affected investor confidence.Among Sensex companies, 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 showed declines.In contrast, Eternal, Titan, Adani Ports, Bharat Electronics Ltd, State Bank of India, Bajaj Finserv, NTPC and Bharti Airtel registered gains.“Domestic equities opened lower, extending profit booking amid caution ahead of tomorrow’s US Fed policy decision, rupee weakness, persistent FII outflows, and ongoing uncertainty over the US–India trade deal. IT stocks led the decline, while PSU banks, realty, and consumer durables gained, with small caps outperforming other indices,” Vinod Nair, Head of Research, Geojit Investments Ltd, said.The US Federal Reserve begins its two-day policy meeting on Tuesday, where the FOMC will determine key interest rates for the US economy.In Asian markets, indices in Hong Kong, Shanghai, and South Korea closed lower, while Japan’s Nikkei 225 finished positively. European markets showed gains, while Wall Street ended lower on Monday.Nair noted that rising Japanese bond yields and potential Bank of Japan policy changes at its December meeting affected global sentiment. Markets anticipate a 25-basis-point Fed rate reduction and BoJ rate increase, with 2026 guidance being crucial.Foreign Institutional Investors sold equities worth Rs 655.59 crore on Monday, while Domestic Institutional Investors purchased stocks valued at Rs 2,542.49 crore, per exchange data.“In the near term, central bank commentary, currency movement, and FII flows will steer sentiment, while domestic macro resilience is expected to provide a cushion against downside risks,” he said.Brent crude decreased 0.27 per cent to USD 62.33 per barrel.On Monday, the BSE Sensex fell by 609.68 points to 85,102.69. The NSE Nifty ended its two-day rise, declining by 225.90 points to 25,960.55.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
