Indian benchmark indices, Sensex and Nifty 50, opened in the red on Tuesday, reflecting cautious sentiment in the market. The Sensex opened at 81,511.81, while the Nifty 50 started at 24,584.80.
Both indices saw a sharp decline of up to 1.4%, hitting a two-week low by the close of the trading session. The Sensex dropped 1,064 points, closing at 80,684, while the Nifty 50 fell 332 points, ending at 24,336. The losses were driven by declines in heavyweight stocks, and investors stayed away from risky bets ahead of the Federal Reserve’s rate decision due later in the day.
Overnight, U.S. stock indices ended on mixed notes. The Dow Jones suffered its eighth consecutive loss, while the S&P 500 gained 0.4%, and the Nasdaq Composite hit another record high, rising 1.2%.
Markets are staying cautious as they await the outcome of the Fed’s meeting. While analysts expect a 25 basis point rate cut, there are concerns that the Fed may signal a pause in rate cuts or provide a cautious outlook for future policy meetings, causing uncertainty in global markets.
