Indian equities experienced a slight decline on Monday, aligning with subdued signals from international markets as investors anticipated the Federal Open Market Committee (FOMC) meeting scheduled for Wednesday. Although a reduction in the interest rate by 25 basis points is already expected by the markets, focus will be on the revised policy statement and the press conference by Federal Reserve Chair Jerome Powell for insights into future rate changes under the Trump administration.
The decline in the local markets was moderated due to positive data indicating a robust performance of India's private sector, which saw its highest growth in four months during December, driven by accelerated output from both manufacturers and service providers. The HSBC Composite Output Index rose to 60.7 in December from 58.6 in November.
Additionally, separate statistics revealed that India's Wholesale Price Index (WPI) inflation rate fell to a three-month low of 1.89 percent in November, indicating a slowdown in the rising prices of food products and manufactured goods.
The benchmark S&P BSE Sensex decreased by 384.55 points, or 0.47 percent, closing at 81,748.57. Meanwhile, the broader NSE Nifty index ended at 24,668.25, marking a reduction of 100.05 points, or 0.40 percent, from its previous closing figure.
Within the Nifty group, Tech Mahindra, TCS, Adani Ports, Hindalco, and Titan Company faced declines of 1-2 percent, while Dr. Reddy's Laboratories saw an increase of 1.7 percent, and IndusInd Bank advanced by 1.2 percent.
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