Mirroring global weakness, the Sensex fell 111 points on Tuesday, halting its four-day winning run, and the NSE Nifty broke below the 8,800-mark as investors turned cautious ahead of key policy meetings of the US Federal Reserve and Japanese central bank. Meanwhile, the consensus is that the Fed will leave rates unchanged, but investors are looking for commentary and the guidance for the next interest rate hike.
“Investors are widely expecting status quo on interest rate, however, any hawkish commentary from the Fed may divert the liquidity to safe haven assets and add volatility to the domestic market,” said Vinod Nair, Head of Research Geojit BNP Paribas Financial Services. Meanwhile, calling the reform process slow and gradual with muted private investment and NPAs posing a challenge, Moody’s said it could upgrade India’s rating in 1-2 years if it is convinced that reforms are ‘tangible’. In stock specific action, Jubilant FoodWorks plunged 6.08 per cent to `944.15 following news that its CEO and Whole- time Director Ajay Kaul will resign to pursue opportunities outside the company.