Mumbai: Benchmark indices Sensex and Nifty retreated from record high levels on Wednesday following intense selling in Reliance and HDFC twins as investors turned cautious ahead of the outcome of the US Federal Reserve's policy meeting.
The 30-share BSE index ended 271.07 points or 0.51 per cent lower at 52,501.98. It had closed at an all-time high of 52,773.05 on Tuesday. The broader NSE Nifty retreated from a record and declined 101.70 points or 0.64 per cent to 15,767.55.
PowerGrid was the top laggard in the Sensex pack, shedding around 2 per cent, followed by IndusInd Bank, Reliance, L&T, UltraTech Cement and Bajaj Finance.
On the other hand, Nestle, NTPC, ONGC, Bajaj Finserv Hindustan Unilever and Infosys were among the gainers.
Investors kept an eye on the two-day US Federal Reserve meeting, which is set to conclude on Wednesday.
Lack of fresh trigger from overseas markets also weighed on the local stocks as Asian markets closed mixed. Bourses in Shanghai, Hong Kong and Tokyo ended on a negative note, while Seoul settled with gains.
Equities in Europe were trading mixed in mid-session deals.
International oil benchmark Brent crude was trading 0.14 per cent higher at USD 74.09 per barrel.
Foreign institutional investors (FIIs) emerged as net buyers in the capital market as they bought shares worth Rs 633.69 crore on Tuesday, as per provisional exchange data.
Gold Dips By Rs 48; Silver Up By Rs 340
Gold in the national capital on Wednesday dipped marginally by Rs 48 to Rs 47,814 per 10 gram amid muted global trends, according to HDFC Securities.
In the previous trade, the precious metal had closed at Rs 47,862 per 10 gram.
In contrast, silver rose by Rs 340 to Rs 70,589 per kg, from Rs 70,249 per kg in the previous trade.
In the international market, both gold and silver were trading flat at USD 1,859 per ounce and USD 27.78 per ounce, respectively.
HDFC Securities Senior Analyst (Commodities) Tapan Patel said, "Gold prices traded near four-week lows as traders and investors are awaiting outcome from the US FOMC meeting."
Motilal Oswal Financial Services Vice-President (Commodities Research) Navneet Damani said, "Gold prices traded steady after a fall witnessed in the yesterday's (Tuesday) session, due to a stronger dollar and an uptick in US yields as investors look forward to the outcome of the the US Federal Reserve meeting."
Rupee Slips 1 Paisa To Close At 73.32 Against USD
The rupee on Wednesday fell by 1 paisa to end at 73.32 (provisional) against the US dollar ahead of the outcome of the US Federal Reserve meeting.
At the interbank foreign exchange market, the rupee opened at 73.29 per dollar as against its previous close of 73.31. It hovered in the range of 73.26 to 73.38 during the day.
The domestic currency has lost 52 paise in the seven trading sessions to Wednesday.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.04 per cent to 90.50.
"The USDINR spot remains in the mid-range ahead of the Federal Open Market Committee (FOMC) announcement. If the FOMC pushes back tapering talk, it will dismiss the uptrend in spot. Otherwise any hint over the timing of tapering will continue the dollar rally, pushing the USDINR spot higher towards the crucial resistance of 73.50," said Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services.
Gupta further said that "a consistent trading above that will push prices towards 73.60-73.75, however a reversal may be bring the spot back to 72.75-73 zone."
On the domestic equity market front, the BSE Sensex ended 271.07 points or 0.51 per cent lower at 52,501.98, while the broader NSE Nifty fell 101.70 points or 0.64 per cent to 15,767.55.