Indian stock markets opened lower on Tuesday, with both the Sensex and Nifty retreating as investors adopt a cautious stance ahead of the US Federal Reserve's interest rate decision later this week. The BSE Sensex dropped by 226.72 points (0.28%) to 81,521.85, while the Nifty 50 fell by 82.85 points (0.34%) to 24,585.40. Market sentiment is nervous as traders await the Fed's key policy rate decision and its guidance for the upcoming year.
Analysts note that Nifty is facing strong resistance near the 24,800 mark, and intermittent spikes in the India VIX, a measure of market volatility, are adding to the pressure. Investors are keenly observing any clues regarding the US central bank's potential shift toward a more neutral policy rate for 2024, which could impact global market dynamics.
Despite the cautious outlook in Indian markets, positive signals from US markets, where the Nasdaq reached a record high and the S&P 500 closed higher, could provide some support for select stocks in India.
