National stock indexes suffered losses for the second straight session on Wednesday, the last day of Samvat 2077, as investors sat on the sidelines ahead of a crucial outcome of the Fed’s policy meeting, where it is expected to announce the reduction of its stimulus measures for the pandemic era.

The Sensex finished 257.14 points or 0.43% lower at 59,771.92. Likewise, the larger Nifty lost 59.75 points or 0.33% to 17,829.20.

Sun Pharma was the main laggard in the Sensex pack, falling 3.06%, followed by IndusInd Bank, Kotak Mahindra Bank, Bharti Airtel, ICICI Bank, M&M and HDFC Bank. On the other hand, L&T, UltraTech Cement, Asian Paints, SBI, Tata Steel and Bajaj Finance were among the winners, with gains of up to 3.99%.

The SBI jumped 1.14% after the nation’s largest lender announced a 69% increase in consolidated net profit to ~ 8,889.84 crore for the September quarter on lower bad debts .

“After a sideways move after its positive opening, the indices fell as major global indices traded weakly before the Fed’s policy announcement,” said Vinod Nair, research manager at Geojit Financial Services.

The Federal Reserve is expected to broadly announce the reduction in its short-term asset purchase program, while any hint of an interest rate reversal keeps investors on edge, he noted.

“Any indication showing a faster rate of reduction will have a negative effect on the equity market. Otherwise, we can expect a reversal of this weak trend.

“On a positive note, despite rising input costs, India’s services PMI jumped to 58.4 in October from 55.2 in September due to continued improvement in demand boosting demand. sales growth, ”added Nair.

Domestic markets closed the Hindu calendar year Samvat 2077 with stellar gains. The Sensex rose 16,133.94 points or 36.97%, while the Nifty climbed 5,048.95 points or 39.50%.

The markets will have a special one-hour Muhurat trading session on Diwali (Thursday) to mark the start of Samvat 2078.

“It would be unfair to assume that benchmarks will offer similar returns over the short term. Short-term benchmark returns may not be the right way to assess investment opportunity.

“A carefully constructed portfolio that harnesses the favorable winds, which the Indian economy is expected to benefit from in the coming years, is expected to generate compound returns of 12-15% over the medium term,” said Krishna Kumar Karwa, Managing Director of Emkay Global Financial Services.

On a sectoral level, the BSE indices of telecommunications, bankex, automotive, durable consumer goods and finance ended down 1.50% on Wednesday, while capital goods, real estate , metals and industrials finished higher.

The larger BSE mid and small cap indices slipped as much as 0.32 percent.

Global markets were in standby mode before the US Federal Reserve‘s policy announcement.

Elsewhere in Asia, the Shanghai, Hong Kong and Seoul stock exchanges posted losses, while Tokyo was closed.

European stock exchanges were also trading on a negative note during mid-session trading.

Meanwhile, international benchmark Brent crude oil fell 1.66% to $ 83.31 per barrel.

The rupee appreciated 22 paise to close at 74.46 against the US dollar on Wednesday amid lower crude oil prices and foreign fund flows in domestic IPOs.

Foreign institutional investors were net buyers in the capital market on Tuesday as they bought shares worth Rs 244.87 crore, exchange data showed.

(This story was not edited by Business Standard staff and is auto-generated from a syndicated feed.)


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