Markets decline amid weak global trends, Sensex falls 385 points

Indian benchmark indices Sensex and Nifty closed lower on Monday due to weak global cues amid caution ahead of the US Fed interest rate decision later this week. The 30-share BSE benchmark Sensex declined 384.55 points or 0.47 per cent to settle at 81,748.57. During the day, it dropped 581.84 points or 0.70 per cent to 81,551.28. The NSE Nifty lost by 100.05 points or 0.40 per cent to 24,668.25.
From the 30-share Sensex blue-chip pack, Titan, Adani Ports, UltraTech Cement, Tata Consultancy Services, NTPC, Bharti Airtel, Tech Mahindra, Infosys, Hindustan Unilever and JSW Steel were the biggest laggards.IndusInd Bank, Bajaj Finance, Power Grid, Mahindra & Mahindra and Axis Bank were the gainers.
Indices are expected to remain range-bound as markets await clearer signals from the Federal Reserve regarding interest rates. In the latter half of December, analysts predict a slowdown in FII activity, with stock-specific movements likely to take center stage in shaping the domestic market dynamics.
Meanwhile, India’s wholesale inflation eased to 1.9 percent in November, down from 2.4 percent the previous month, as food prices cooled off, according to government data released on December 16. The rupee fell 3 paise to 84.83 against the US dollar in early trade on Monday,dragged down by a muted trend in domestic equities and elevated crude oil prices. Forex traders said the rupee remains in a weakening mode due to dollar demand from importers and foreign banks. At the interbank foreign exchange, the rupee opened at 84.83 against the greenback, registering a fall of 3 paise over its previous close.