Sensex snaps two-day uptrend, down 103pts ahead of US Fed meet

Sensex snaps two-day uptrend, down 103pts ahead of US Fed meet

The S&P BSE benchmark Sensex today retreated from one-week high levels to end nearly 103 points down on selling pressure in rate-sensitive sectors and fresh weakness in rupee, amid global markets adopting caution ahead of US Fed's decision over continuing monetary stimulus.

Shares of banking, consumer durables, PSU, capital goods and power declined on renewed selling pressure. Refinery, FMCG and auto shares also moved down on profit-booking.

Sensex resumed slightly higher at 19,329.17 and hovered in a range of 19,383.61 and 19,191.37. It finally ended at 19,223.28, showing loss of 102.59 points or 0.53 per cent. It had gained by 498.71 points, or 2.65 per cent, in past 2 days.

Traders were cautious as global markets keenly awaited decisions from the US Fed, whose two-day policy-meeting starts today. Investors are looking for signals if Fed will taper USD 85 billion in monthly bond purchases after US economy showed some recovery in recent weeks, brokers said.

Reflecting the cautious mood, rupee was trading at 58.76 against US dollar, down a whopping 89 paise or 1.54 per cent.

"Weakness in global markets ahead of Fed's decision over continuing its stimulus plan, falling Rupee and selling from FIIs kept the indices under pressure," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Limited.

Lenders led by ICICI Bank, State Bank of India and HDFC Bank closed down. NTPC was the biggest loser in Sensex. Bharti Airtel fell over 1.6 per cent a day after Trai lowered roaming charges for calls and SMSes. However, bucking the overall weak trend, Infosys rose on hopes of a weak rupee boosting sales.

The NSE Nifty lost 36.45 points, or 0.62 per cent to end at 5,813.60. Also, SX40 index, the flagship index of MCX-SX, closed at 11,413.03, down 44.81 points or 0.39 per cent.

Globally, Asian stocks ended higher as indices in Singapore, South Korea, Taiwan and China moved up by 0.23-1.45 per cent while Japan's Nikkei eased by 0.20 per cent. Hong Kong's Hang Seng was flat. In Europe, France and Germany indices were trading lower.

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