Indian stock markets touched fresh record highs on September 18 but failed to sustain the momentum, closing in negative territory as investors remained cautious ahead of the US Federal Reserve's decision on interest rates. The Sensex dropped by 131.43 points, or 0.16%, to close at 82,948.23, while the Nifty fell 41 points to 25,377.50.
Banking sector provides early support
After a weak opening, the markets rebounded, driven by gains in banking stocks. However, selling pressure across other sectors, particularly in the IT, pharma, and auto sectors, pushed the indices down in the second half of the session. Banking stocks remained resilient, with ICICI Bank and Bajaj Finance among the top gainers.
IT stocks lead decline
IT sector stocks were the biggest losers, with TCS, HCL Technologies, Infosys, Tech Mahindra, and Wipro dragging the Nifty lower, shedding over 3%. Other sectors such as auto, pharma, metals, and oil & gas also witnessed losses, declining between 0.5-1%.
Mid and small cap indices follow suit
The broader market mirrored the overall sentiment, with the BSE midcap index losing 0.7% and the smallcap index slipping 0.5%.
Investors await fed decision
The US Federal Reserve is widely expected to lower interest rates, though the extent of the cut remains uncertain. The Fed's policy statement, particularly its outlook on future rates, is expected to influence the trajectory of Indian markets, especially in sectors such as IT and pharma that are sensitive to foreign inflows and global sentiment.
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