The benchmark BSE Sensex and Nifty closed nearly 1% lower on July 26 amid fresh outflow of foreign funds and mixed global trends.
The 30-share BSE benchmark ended 497.73 points or 0.89% lower at 55,268.49, marking its second consecutive day of loss. During the day, it fell 562.79 points, or 1%, to 55,203.43.
The broader NSE Nifty fell 147.15 points, or 0.88%, to 16,483.85.
Among the Sensex constituents, Infosys, Axis Bank, Hindustan Unilever, Dr Reddy’s Lab, Wipro, Kotak Mahindra Bank and Larsen & Toubro were the biggest laggards.
Bajaj Finserv, Bharti Airtel, Power Grid and Bajaj Finance were among the gainers.
Vinod Nair, Head of Research, Geojit Financial Services, said the Fed meeting starting today is expected to maintain an aggressive rate hike of 75 bps (basis points) and bearish fears especially in western markets.
“Even though the domestic market is showing strength, the spillover effect from the western market is inevitable,” Mr. Nair said.
In Asia, markets declined marginally in Tokyo, while closed higher in Shanghai, Seoul and Hong Kong.
European markets were mostly trading lower during mid-session deals. On Monday, US markets closed with a mixed trend.
Meanwhile, international oil benchmark Brent crude jumped 1.38% to 106.6 per barrel.
Foreign institutional investors offloaded shares worth Rs 844.78 crore on Monday, according to exchange data.