Sensex, Nifty fall amid profit booking in IT stocks; TCS falls 4%

Benchmark stock market indices closed lower on Wednesday after the markets witnessed profit booking in IT stocks ahead of the US Fed rate announcement.
The S&P BSE Sensex closed 131.43 points down at 82,948.23, whille the NSE Nifty50 lost 41 points to end at 25,377.55.
Vinod Nair, Head of Research, Geojit Financial Services said that the Indian market experienced a minor profit booking with underperformance by midcaps.
“Mixed signals from global markets emerged ahead of the anticipated FOMC rate cut decision which is seemingly priced in a 25-bps cut. Investors assess the potential for a short-term underperformance of equity given the elevated valuation and correction of metal prices. Commodities, including oil prices, are steadily declining, suggesting a potential tempering of economic growth. Investor caution is evident as gold prices rise, likely due to anticipated dollar weakness following the rate cut,” he added.
“Similar to how the Fed declined in interest rates, there is a good chance that the RBI will follow suit, which has given the banking industry hope. For this reason, Bank Nifty closed the day higher,” said Vaibhav Vidwani, Research Analyst, Bonanza.