All the Nifty sectoral indices also ended in the red, with losses across banking, financial services, auto and IT stocks.

Sensex, Nifty erase Trump-fuelled gains as focus shifts to Fed rate decision

The S&P BSE Sensex ended 836.34 points to 79,541.79 at the closing bell, while the NSE Nifty50 tumbled 284.70 points to settle at 24,199.35.

by · India Today

In Short

  • &P BSE Sensex drops 836.34 points; Nifty50 falls 284.70
  • Nifty sectoral indices end in red, led by banking, IT
  • Apollo Hospitals, SBI, HDFC Life, TCS among top Nifty gainers

Benchmark stock market indices ended the trading session on a weak note as investors turned their attention to the US Federal Reserve’s rate decision.

The S&P BSE Sensex ended 836.34 points to 79,541.79 at the closing bell, while the NSE Nifty50 tumbled 284.70 points to settle at 24,199.35.

Most of the major indices fell sharply as volatility rose. All the Nifty sectoral indices also ended in the red, with losses across banking, financial services, auto and IT stocks.

The top five gainers on the Nifty50 were Apollo Hospitals, SBI, HDFC Life, TCS and Coal India. On the other hand, the top losers were Hindalco, Trent, Grasim, Shriram Finance and Adani Enterprises.

Aditya Gaggar, Director of Progressive Shares, said, “Diverging from strong global equities, Indian markets started the weekly expiry trade on a tepid note and a sudden fall was seen in the opening trade followed by a range-bound trade before ending the session at 24,199.35 with a loss of 284.70 points.”

“Barring PSU Banks, all the other sectors ended the day in red with Metal and Pharma being the major laggards,” Gaggar noted.

“On the daily chart, the Index (Nifty) has formed a bearish engulfing pattern but it appears that it is forming a right shoulder of an Inverted Head & Shoulder formation with a neckline being placed at 24,500 which is also immediate resistance while on the lower side, psychological level of 24,000 will serve as a support,” he added.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said, “Markets failed to capitalise on its firm start, as selling pressure resumed after yesterday's breather. The fall can be attributed to continuing foreign fund outflows after the rupee slumped to fresh lows following strength in the US dollar."

"Investors restricted their equity bets ahead of the US Fed's policy announcement as they are unsure of the rate cut this time on concerns of a likely uptick in inflation," he added.