Mumbai: Indian markets wavered heavily and shook with fluctuations as bulls turned highly vigilant ahead of the much-anticipated Federal Reserve monetary policy announcement with the benchmark Nifty slipping below the key psychological 8,700-mark on the National Stock Exchange(NSE).
Extreme volatility amid Federal Reserve monetary policy speculation mainly dominated trading sentiment as investors tread carefully ahead of a Federal Reserve review of monetary policy that may signal a rate hike ahead.
Despite a positive start, the initial minor gains were erased soon as market participants turned cautious on the outcome of the two-day meet. The key indices traded with high amount of volatility and witnessed wide swings before ending with losses.
The prospect of the US central bank hiking key interest rates sooner than earlier anticipated on the back of robust economic data predominantly triggered a wave of volatility and rout in financial and currency markets worldwide recently including currency and commodities prices.
Meanwhile, bucking the volatile trend, most other equities in the region ended firmly higher, with indexes in Japan and China conquering new new multi-year highs for the second straight session.
The broad-based 50-share Nifty opened firm at 8,742.90 and fluctuated between a high of 8,747.25 and a low of 8,664 before ending at 8,685.90, a fall of 37.40 points, or 0.43 percent, over its last close.
Among the sectoral indices, Infra, Technology, Auto and FMCG witnessed renewed selling pressure led by key frontline stocks. However, Financials, Banking, Metal and Healthcare alongwith Mid-cap and Small-cap outperformed the benchmark indices.
State-run power major NTPC was the biggest index loser, falling 3.29 percent.
Other contributors to the large decline included HDFC, Tata Motors, ITC, TCS, L&T, Infosys, NTPC, ONGC, Tech-M, HCL-Tech, Wipro, Asian Paints, M&M, HUL, BHEL, Bharti Airtel, Ambuja Cement, ACC and Grasim.
Notalble gainers were Reliance, SBI, Zee, HDFC Bank, BPCL, Heromotoco, IDFC, Sun Pharma, NMDC, Axis Bank, Coal India, Sesa Sterlite and Kotak Bank.
Turnover in the cash segment dropped to Rs 18,203.77 crore compared to Rs 19,139.41 crore yesterday. A total of 9,221.57 lakh shares changed hands in 72,61,373 trades. The market capitalisation at NSE stood at Rs 101,38,635 crore.
