Sensex, Nifty Decline Ahead of US Fed Decision

Mumbai, May 6 (PTI) Benchmark indices Sensex and Nifty declined in early trade on Tuesday facing volatile trends as investors preferred to stay on the sideline a day ahead of the US Federal Reserve's policy decision.

Also, range-bound trading prevailed in the markets amid escalating tensions between India and Pakistan following the April 22 terror attack in Pahalgam and concerns over US-China trade negotiations.

The 30-share BSE benchmark gauge declined 100.4 points to 80,696.44 in early trade, despite a positive opening. The NSE Nifty dipped 40.15 points to 24,421.

From the Sensex firms, Titan, Sun Pharma, Eternal, Reliance Industries, Kotak Mahindra Bank and Bajaj Finance were among the laggards.

Mahindra & Mahindra, Bharti Airtel, Nestle, Hindustan Unilever and Tata Steel were among the gainers.

"Sustained FII buying for the 13th day in a row, supported by weak dollar, has imparted resilience and support to the market despite the India-Pak tensions. But the uncertainty regarding the India-Pak tensions will keep the market range-bound in the near-term," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.


In Asian market, Shanghai' SSE Composite index and Hong Kong's Hang Seng were trading higher. South Korea and Japanese markets were closed due to holidays.

US markets ended in the negative territory on Monday.

Foreign Institutional Investors (FIIs) bought equities worth Rs 497.79 crore on Monday, according to exchange data.

"Globally, US markets ended slightly lower due to profit-booking following a nine-day rally, amid concerns over US-China trade negotiations and anticipation surrounding the Federal Reserve's policy decision, which is expected tomorrow," Vikas Jain, Head of Research at Reliance Securities, said.

Global oil benchmark Brent crude jumped 1.56 per cent to USD 61.17 a barrel.

The 30-share BSE benchmark climbed 294.85 points or 0.37 per cent to settle at 80,796.84 on Monday. The Nifty rose by 114.45 points or 0.47 per cent to 24,461.15.