Sensex drops 271 points, Nifty below 15,800; metal stocks lose sheen

MUMBAI: Equity markets consolidated near record high levels on Wednesday as investors awaited the outcome of the US Federal Reserve's monetary policy meeting, due later in the day. Moreover, a rally in crude oil price, which is hovering above $74 per barrel, also had a bearing on the sentiment.

The benchmark S&P BSE Sensex traded within a band of 391 points before settling the day at 52,502 levels, down 271 points or 0.5 per cent. On the NSE, the Nifty50 index erased 102 points, or 0.64 per cent, to close at 15,767 levels.

In the broader markets, the BSE MidCap index slipped 0.95 per cent while the BSE SmallCap index dipped 0.68 per cent.

Market breadth was skewed towards bears as approximately 1,800 scrips declined on the BSE compared with 1,400 scrips that advanced. In the large-cap universe, Adani Ports, Hindalco, JSW Steel, Tata Steel, IndusInd Bank, Power Grid and Reliance Industries were the top laggards while Adani Enterprises, LIC Housing Finance, Adani Transmission, Future Retail, Future Consumer, and Suprajit Engineering were the worst performing stocks in the mid- and small-cap segment.

Sectorally, the Nifty Metal index skidded 3 per cent on the NSE on report that China has ordered state firms to curb overseas commodity exposure. A Reuters report also said China may release State reserves for Copper, Aluminum, and Zinc.

That apart, the Nifty PSU Bank and Realty indices dropped over 1 per cent each. On the contrary, the Nifty FMCG and IT indices gained 0.5 per cent and 0.25 per cent, respectively.

Asian shares were subdued on Wednesday with investors wary of any hint of hawkishness from the US Federal Reserve given lofty asset valuations rely so heavily on an endless supply of super-cheap money.

Japan's Nikkei ended 0.5 per cent lower and China's Shanghai Index dipped 1 per cent. South Korea's Kospi and Australia's ASX200, on the other hand, gained 0.6 per cent and 0.01 per cent, respectively. (IANS)

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