Markets End Lower Amid West Asia Tensions; Fed Decision Eyed
Mumbai : Benchmark equity indices ended in the red on Tuesday as rising geopolitical tensions in West Asia and caution ahead of the U.S. Federal Reserve’s policy decision weighed on investor sentiment. While selective buying in auto and private banking stocks offered some support, broader market volatility remained evident.
The BSE Sensex declined 138.64 points, or 0.17%, to close at 81,444.66, after hitting an intraday low of 81,237. Similarly, the NSE Nifty fell 41.35 points to settle at 24,812.05, mirroring the overall weak trend.
Broader indices followed suit, with the Nifty Midcap100 slipping 0.46% and the Nifty Smallcap100 down by 0.23%. Sectoral performance was mixed; Nifty Media led the losers with a 1.27% drop, followed by declines in IT, metal, oil & gas, realty, energy, PSU banking, and FMCG sectors.
On the upside, gains in consumer durables, automobiles, and banking stocks lent partial support to the indices. Key gainers on the Sensex included IndusInd Bank, Titan, Mahindra & Mahindra, Maruti Suzuki, Asian Paints, and Bharti Airtel, which rose up to 4.4%.
In contrast, major laggards included TCS, Hindustan Unilever, Nestle India, Bajaj Finserv, and NTPC, with losses up to 1.79%.
Commenting on the market outlook, Vinod Nair, Head of Research at Geojit Financial Services, said:
“Despite short-term volatility, the long-term domestic outlook remains stable, supported by strong macroeconomic fundamentals. Investors are likely to focus on quality large-cap stocks until there is more clarity.”
Investors are now keenly awaiting the U.S. Federal Reserve’s policy decision, expected later tonight. With inflation remaining a concern due to global supply disruptions and surging crude oil prices, analysts anticipate the Fed may hold interest rates steady, while the market closely monitors Chair Jerome Powell’s guidance on future rate movements and economic projections.
Despite the global headwinds, the India VIX, a gauge of market volatility, declined 0.89% to 14.27, indicating a relatively muted risk perception for now.
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