ET Market Watch: Sensex and Nifty extend three-day losing streak ahead of Fed interest rate decision | The Economic Times Podcast

Indian shares ended Wednesday’s session in the red, losing early gains as investors turned cautious ahead of the US Federal Reserve’s policy decision.The Sensex lost 275 points to close at 84,391, while the Nifty fell 82 points to close at nearly 25,758. Both indices are now down around 1.6% over the past three sessions, reflecting rising risk aversion.

Profit-taking was visible among the heavyweight stocks. Eternal, Trent, Bharti Airtel, Infosys and Tech Mahindra fell between 1% and 3%. The financial sector lost 0.5%, while the IT index fell almost 1%. The pain also spread to broader markets, with midcaps down 1.1% and smallcaps down almost 1%.

Among stock-specific measures, IndiGo operator InterGlobe Aviation fell more than 3% after the government said it would cut 10% of scheduled flights following widespread cancellations last week.

On the other hand, newly listed Meesho stole the spotlight, rising 53% from its IPO price on debut, buoyed by enthusiasm around its asset-light, zero-commission business model.

Market sentiment remains fragile due to continued foreign outflows, a softer rupee and uncertainty over a US-India trade deal.

Global equities remained cautious as they awaited the Fed’s outcome. Futures are pricing in an 89% chance of a 25 basis point rate cut, but investors expect policymakers to remain wary of future easing. European shares fell, US futures traded marginally higher, while silver rose to a record above $61 an ounce, stealing the spotlight from commodities.

At home, the rupee weakened to 89.96 against the dollar, and oil prices were largely stable. All eyes are now on central bank signals and global developments for the next market trigger.

That’s your ET Market Watch. Thanks for listening.