Mumbai: The Indian stock market closed in the red on Tuesday, as selling pressure was observed across various sectors, including PSU banks, auto, IT, financial services, pharma, FMCG, metal, and realty. This drop comes ahead of significant policy decisions, particularly from the US Federal Reserve.

At the close of trading, the Sensex settled at 80,684.4, down by 1,064.12 points or 1.30 per cent. Meanwhile, the Nifty ended at 24,336, down by 332.25 points, or 1.35 per cent.

Market experts noted that widespread pessimism is dominating all sectors, as investors await policy decisions from the US Fed, Bank of Japan, and Bank of England. Although a 25-basis-point cut by the US Fed is largely anticipated, markets remain cautious for any hawkish signals, they added.

Sectoral Performance

The Nifty Bank index ended at 52,834.80, down by 746.55 points, or 1.39 per cent. Similarly, the Nifty Midcap 100 index closed at 59,101.90, down by 341.15 points, or 0.57 per cent, while the Nifty Smallcap 100 index settled at 19,398.45, dropping 132.60 points, or 0.68 per cent.

Market Breadth and Sectoral Updates

On the Bombay Stock Exchange (BSE), 1,578 shares ended in the green, while 2,440 shares closed in the red. There was no change in 89 stocks. The media sector of Nifty witnessed some buying activity amid the broader market decline.

In the Sensex pack, top losers included Bharti Airtel, IndusInd Bank, JSW Steel, TCS, Asian Paints, L&T, Bajaj Finserv, Reliance, Nestle India, HDFC Bank, Maruti, M&M, Tata Steel, and Power Grid. ITC was the only notable gainer.

Currency Outlook

The rupee traded flat near 84.90, as markets await the US Fed's final policy decision of the year, scheduled for December 18.

“A dovish tone could push the dollar index lower, providing relief for the rupee. However, any uncertain or hawkish remarks may strengthen the dollar, keeping participants bearish on the rupee. The rupee’s range is anticipated between 84.75 and 85.05,” said Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities.

With IANS inputs