Markets Open with Negative Sentiment

At 9:16 AM, the BSE Sensex was trading at 80,576.37, down 108 points or 0.13%. Similarly, the Nifty50 was at 24,295.85, reflecting a decline of 40 points or 0.16%. The broad-based negative sentiment in domestic markets on Tuesday was driven by investors' anticipation of crucial US Federal Reserve policy decisions.

Analysts suggest that if the index falls below 24,300, it could face further decline towards 24,000. Market experts recommend maintaining protective positions and waiting for clearer direction amid the current uncertain conditions.

Global Markets Await Federal Reserve's Stance

US stocks experienced a decline on Tuesday, with the Dow Jones Industrial Average falling for nine consecutive sessions. Investors remained cautious ahead of the Federal Reserve's final policy announcement, despite robust consumer spending data.

Asian equities showed mixed performance following Wall Street's decline, with focus on the Federal Reserve's year-end policy decision. Gold prices strengthened as traders remained cautious ahead of the Federal Reserve's monetary policy announcement.

The US dollar remained stable against the yen and major currencies on Wednesday as markets await the Federal Reserve's stance on rate cuts before the Bank of Japan and other central banks' meetings this week.

Domestic Market Dynamics

Foreign Portfolio Investors (FPIs) recorded net sales of Rs 278 crore on Monday. Domestic Institutional Investors (DIIs) sold shares worth Rs 234 crore. The net short position of Foreign Institutional Investors (FIIs) increased from Rs 60,551 crore on Friday to Rs 75,038 crore on Monday.