Markets decline in early trade dragged by Reliance, HDFC Bank; caution ahead of U.S. Fed rate decision

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Equity benchmark indices Sensex and Nifty declined in early trade on Tuesday (December 17, 2024) amid cautious investors approach ahead of the U.S. Fed interest rate decision and selling in blue-chip stocks like Reliance Industries and HDFC Bank.

The 30-share BSE benchmark Sensex declined 350.98 points to 81,397.59 in early trade. The NSE Nifty went down 100.8 points to 24,567.45.

From the 30-share blue-chip pack, Reliance Industries, Bharti Airtel, Nestle, Larsen & Toubro, Bajaj Finserv, HDFC Bank, JSW Steel and Titan were among the laggards.

Tata Motors, Adani Ports, Tech Mahindra, HCL Technologies and Hindustan Unilever were the gainers.

In Asian markets, Seoul, Shanghai and Hong Kong were trading lower while Tokyo quoted in the positive territory.

Wall Street ended mostly higher on Monday (December 16, 2024).

“Globally markets will be looking forward to the FOMC (Federal Open Market Committee) outcome. Markets have already discounted a 25 bps rate cut and, therefore, the focus will be on the Fed chief’s commentary. Any departure from a dovish commentary will be negative from the market perspective. This is only a remote possibility,” V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹278.70 crore on Monday (December 16, 2024), according to exchange data.

Global oil benchmark Brent crude dipped 0.14% to $73.81 a barrel.

The 30-share BSE benchmark declined 384.55 points or 0.47% to settle at 81,748.57 on Monday (December 16, 2024). The Nifty lost 100.05 points or 0.40% to 24,668.25.