Indian stock market closed in red

Mumbai: Indian stock markets closed in the red on Tuesday ahead of key policy decisions, especially from the US Federal Reserve. Selling was seen in PSU Bank, Auto, IT, Financial Services, Pharma, FMCG, Metal and Realty sectors of the Nifty at the end of trading.
The Sensex closed down 1,064.12 points or 1.30 per cent at 80,684.4 and the Nifty closed down 332.25 points or 1.35 per cent at 24,336. According to market experts, disappointment prevailed across sectors ahead of key policy decisions by the US Fed, Bank of Japan and Bank of England. Although the market has already factored in the 25 basis point rate cut by the US Fed, it is already cautious for any hawkish signals. Nifty Bank closed down 746.55 points or 1.39 per cent at 52,834.80. The Nifty Midcap 100 index closed 341.15 points or 0.57 per cent lower at 59,101.90. The Nifty Smallcap 100 index closed 132.60 points or 0.68 per cent lower at 19,398.45.

On the Bombay Stock Exchange (BSE), 1,578 stocks closed in the green and 2,440 in the red, while 89 stocks remained unchanged. On the sectoral front, buying was seen in the media sector of the Nifty. Bharti Airtel, IndusInd Bank, JSW Steel, TCS, Asian Paints, L&T, Bajaj Finserv, Reliance, Nestle India, HDFC Bank, Maruti, M&M, Tata Steel and Power Grid were the top losers in the Sensex pack. Only ITC was the only top gainer.

The rupee held steady near 84.90 as the market remains focused on the Fed’s final policy decision of the year, scheduled on December 18. Research analyst Jatin Trivedi, vice president, commodity and currency at LKP Securities, said, “A dovish stance could push the dollar index lower, giving a breather to the rupee. However, any erratic or hawkish comments could strengthen the dollar and make participants maintain a bearish stance on the rupee. The rupee is expected to trade in a range of 84.75 and 85.05 (per dollar).”