Indian equities witnessed a significant downturn on Wednesday, primarily driven by ongoing foreign institutional investor (FII) sell-offs and prevailing uncertainties concerning the Federal Reserve's policy direction, which left investors on edge.
Adding to the negative market sentiment, tariff concerns resurfaced following U.S. President-elect Donald Trump's reaffirmation to impose reciprocal tariffs in response to India's high tariffs on certain American imports.
The benchmark S&P BSE Sensex declined by 502.25 points, or 0.62 percent, to close at 80,182.20, ahead of the much-anticipated decision on U.S. interest rates from the Federal Reserve later in the day.
Market consensus suggests that the Fed is likely to decrease rates by a quarter point. However, traders are also keenly observing the details of the accompanying statement, alongside the Fed officials' updated economic outlook and rate forecasts.
The anticipation of multiple rate cuts in the coming year is diminishing, considering the labor market's resilience and continued inflationary pressures.
The broader NSE Nifty index ended the session at 24,198.85, marking a decline of 137.15 points, or 0.56 percent, from its last closure.
Secondary stocks suffered notable impacts, with the BSE mid-cap and small-cap indices decreasing approximately 0.6 percent and 0.8 percent, respectively.
Major decliners included JSW Steel, NTPC, BEL, Power Grid Corp, and Tata Motors, which each fell between 2 and 3 percent.
The material has been provided by InstaForex Company -
www.instaforex.com
