India's benchmark stock indices declined through midday on Wednesday ahead of the U.S. Federal Reserve's decision on interest rates later in the day. Realty and energy sectors advanced, whereas metals fell the most.
Nifty 50 was above the 19,000 level, whereas Sensex slipped below the 63,800 mark.
"Despite stable U.S. bond markets and oil prices, the sentiment on Dalal Street is down. Selling Nifty at the current market price is advised, with targets at 19,000 and 18,827 or more aggressively at 18,605," said Prashanth Tapse, senior vice president (research) at Mehta Equities Ltd. "Bank Nifty should also be sold at the current price, targeting 42,398 and 42,000 or a more aggressive range of 41,500 and 41,801."
As of 12:00 p.m., the S&P BSE Sensex was down 103 points, or 0.16%, at 63,772.41, while the NSE Nifty 50 fell 29 points, or 0.15%, to 19,050.20.
Shares in Asia traded broadly higher ahead of Wednesday. MSCI's Asia Pacific rose around 1%, led higher by Japanese stocks, with the Topix benchmark gaining the most in a year. Shares in Hong Kong and mainland China fluctuated after a private survey showed China's manufacturing activity contracted. S&P 500 futures edged lower after the index rebounded on the final day of October.
Traders are taking the latest U.S. economic data as the street expects another interest-rate hold decision from the Fed. The focus is also on the U.S. government's new borrowing plan, due hours ahead of the Fed's announcement.
Bajaj Finance Ltd., Mahindra & Mahindra Ltd., Reliance Industries Ltd., State Bank of India, Tata Consumer Products Ltd. were positively contributing to changes in the Nifty.
Whereas, Axis Bank Ltd., Asian Paints Ltd., HDFC Bank Ltd., Larsen & Toubro Ltd., and Kotak Mahindra Bank Ltd. were weighing on the index.
The broader market indices were trading mixed, with the S&P BSE MidCap rising 0.06% and S&P BSE SmallCap falling 0.35% through midday trade on Wednesday.
Eleven out of the 20 sectors compiled by BSE Ltd. declined, while nine sectors advanced. S&P BSE Realty and S&P BSE Telecommunication rose the most and S&P BSE Metal fell the most.
The market breadth was skewed in the favour of buyers. About 1,912 stocks rose, 1,494 declined, and 166 remained unchanged on the BSE.
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