Financial markets began the week on a cautious note as investors awaited the US Federal Reserve’s key interest rate decision. On Tuesday, Indian benchmark indices experienced a sharp decline for the second consecutive day, driven by weakness in major stocks like Reliance Industries, Infosys, and HDFC Bank. Investor sentiment remained subdued ahead of the US Federal Reserve’s December 18 meeting.

As of 10:25 AM, the BSE Sensex was down 810 points (0.99%) at 80,938, while the Nifty50 fell 245 points (0.99%) to 24,423. The total market capitalization of BSE-listed companies decreased by Rs 2.33 lakh crore, bringing it down to Rs 257.73 lakh crore.

Among the top decliners in the Sensex, Reliance Industries, HDFC Bank, Infosys, Bharti Airtel, and ICICI Bank led the losses. On the other hand, stocks like Tata Motors, Adani Ports, Tech Mahindra, HUL, HCL Tech, and Power Grid saw positive movement.

The Nifty IT sector remained largely unchanged as market participants remained cautious ahead of the US Federal Reserve’s upcoming meeting. According to the CME FedWatch tool, there is a 97% probability of a 25 basis point rate cut on Wednesday. However, uncertainty remains regarding the Fed’s rate-cut plans for 2025, particularly in light of recent US data showing persistent inflation and economic resilience.

The tool also suggests a 17% chance of a rate cut in January, with an 81% likelihood that rates will remain unchanged.

In stock-specific news, Indus Towers shares rose by 2% following a favorable ITAT ruling on depreciation claims related to its merger with Bharti Infratel. The ruling reduced the company’s contingent liabilities by approximately Rs 3,500 crore. GMR Airports shares also gained 2% after reporting an 8% year-on-year increase in aircraft movements for November.