"Internationally, tonight's Federal Reserve message holds significance in shaping the global market direction. Investors will await the Fed chief's communication before making decisive market moves," stated V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Key stock market indices experienced a decline in early Wednesday trading, influenced by a lackluster trend in Asian markets and investors' cautious stance leading up to the US Federal Reserve's interest rate decision.
Furthermore, the escalation of retail inflation to a three-month peak of 5.55 percent in November contributed to the bearish sentiment in the stock market. The 30-share BSE Sensex dropped 130.21 points to 69,420.82, while the Nifty fell 29.05 points to 20,877.35.
Tata Consultancy Services, Axis Bank, Infosys, Bajaj Finance, Bajaj Finserv, and HDFC Bank emerged as the primary underperformers among the Sensex-listed companies.
NTPC, Power Grid, UltraTech Cement, and Larsen & Toubro stood out as significant beneficiaries.
In Asian markets, Seoul, Shanghai, and Hong Kong experienced declines, whereas Tokyo registered positive territory. The US markets closed positively on Tuesday.
The global oil benchmark, Brent crude, saw a 0.20 percent decrease, settling at USD 73.09 per barrel.
On Tuesday, Foreign Institutional Investors (FIIs) turned into buyers, acquiring equities worth Rs 76.86 crore, as per exchange data.
Breaking its downward trajectory, retail inflation increased to a three-month peak of 5.55 percent in November, driven by rising food prices, particularly vegetables and cereals. However, it remains within the RBI's comfort zone of less than 6 percent.
"From a global perspective, tonight's Fed message is crucial in shaping the global market trend. Markets will await the Fed chief's message before making a decisive shift," commented V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Following a two-day upswing, the BSE benchmark dropped by 377.50 points or 0.54 percent, closing at 69,551.03 on Tuesday.
The Nifty also experienced a decline of 90.70 points or 0.43 percent, settling at 20,906.40.
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