Sensex and Nifty erase Trump-led gains as focus shifts to Fed rate decision

Core stock indices finished falling trading session on a weak note as investors turned their attention to the US Federal Reserve’s rate decision.

The S&P BSE Sensex closed 836.34 points at 79,541.79, while the NSE Nifty50 index fell 284.70 points to settle at 24,199.35.

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

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

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

“Except for PSU banks, all other sectors ended the day in the red, with metals and pharma being the main laggards,” Ghaggar said.

“On the daily chart, the Index (Nifty) has formed a bearish engulfing pattern but it appears to be forming the right shoulder of an inverted Head and Shoulder pattern with the neckline located at 24,500 which is also immediate resistance at the lower level. From the outside, the psychological level of 24,000 will serve as support,” he added.

Prashant Tapse, senior vice president, research, Mehta Equities Ltd, said, “Markets failed to capitalize on the strong start as selling pressure resumed after yesterday’s respite. The fall can be attributed to the continued outflow of foreign funds after the rupee fell to new lows following the strengthening of the US dollar.”

“Investors have capped their bets on stocks ahead of the US Federal Reserve’s policy announcement as they are unsure of a rate cut this time due to fears of a likely rise in inflation,” he added.