NEW DELHI: The domestic indices resumed decline on Wednesday after taking a days breather, as investors assumed positions ahead of Thursday's FO expiry.The BSE benchmark Sensex closed the day 109.79 points, or 0.30 per cent, lower at 36,542.27.
The index opened in the green but erased gains during the day amid a selloff in IT, auto and FMCG stocks.Its NSE counterpart Nifty settled at 11,053.80, down 13.65 points, or 0.12 per cent.In the 30-share index 12 stocks ended higher while the rest shut shop on a tepid note.
Tata Motors was the worst laggard while Vedanta emerged to be the best performer.YES Bank, Reliance Industries, Tata Steel and LT were among other Sensex gainers.The advance-decline ratio on BSE stood at 1:1, signalling a mixed trend in the stock market.Midcap and smallcap stocks outperformed benchmark Sensex.
The BSE Midcap index edged 0.42 higher while the BSE Smallcap index gained 0.12 per cent.Barring five, rest of the remaining 14 indices edged higher on BSE.FMCG, IT and auto stocks were among the worst sectoral losers.
The BSE IT index settled the day 1.60 per cent lower with TCS, HCL Tech and Wipro settling nearly 3 per cent lower.BSE Energy, BSE Capital Goods, and BSE Metals were the among the best sectoral gainers.
On the BSE Metals index, only Coal India ended the session in the red.What caused the declineFO expiry: The investors adopted a cautious stance in Wednesday's session and chose to remain on the sidelines ahead of Thursday's FO expiry.All eyes on Fed: Investors were on tenterhooks fearing a hike by US Federal Reserve.
The Fed is expected to hike rates by 25 basis points on expected lines and emphasise that it remains on a gradual rate hiking path, said ICICI Securities.
No substantial changes are expected in terms of the dot plot or projections on the economy, it said.Oil on the boil: Oil prices eased on Wednesday but were still set for a fifth consecutive monthly quarter of gains, driven by an impending drop in Iranian exports in the last three months of the year when global demand heats up, Reuters reported.Brent crude futures were last down 21 cents on the day at $81.66 a barrel.What experts say:Vinod Nair, Head of Research, Geojit Financial ServicesWorries over liquidity issues in NBFC space demoralized investors in domestic markets.
Market stays on a cautious sentiment ahead of Fed policy outcome and higher oil price as major Opec producers declined to increase the output.
Volatility in global markets is likely to remain elevated in the short term given cancellation of trade talks between US China.Jayant Manglik, President, Religare Broking The broader markets outperformed the benchmark with BSE Midcap and Smallcap ending with marginal gains.
The sector indices witnessed a mixed trend.We maintain our cautious stance on the Indian markets as volatility is likely to remain high in the near term.
On the global front, US FOMC meeting scheduled tonight, crude oil and currency movement would be actively tracked by the investors.
We would advise investors and traders to remain selective in stock picking.