Key Points

The Sensex, after slipping to an intra-day low of 81,237, settled at 81,444.66 -- down by 138.64 points, or 0.17 per cent. Similarly, the Nifty closed at 24,812.05, losing 41.35 points, or 0.17 per cent.

"With the supportive base of the domestic macros, the long-term outlook remains intact and investors are likely to be focused on high-quality large-cap stocks until greater clarity emerges," said Vinod Nair of Geojit Investments Limited.

Investors will keep an eye on the US Fed policy later today, and the prospect of higher inflation due to the tariff threat may lead the FOMC to keep the rates unchanged, he added.

Within the Sensex pack, top losers included TCS, Hindustan Unilever, Nestle India, Bajaj Finserv, and NTPC -- all declining up to 1.79 per cent.

On the other hand, IndusInd Bank, Titan, Mahindra and Mahindra, Maruti Suzuki, Asian Paints, and Bharti Airtel stood out as the top gainers, rising up to 4.4 per cent.

Broader markets also ended in the red. The Nifty Midcap100 index fell by 0.46 per cent, while the Nifty Smallcap100 declined by 0.23 per cent.

Among sectoral indices, Nifty Media was the worst performer, dropping 1.27 per cent.

Other sectors like IT, metal, oil and gas, realty, energy, PSU bank and FMCG also ended lower.

However, stocks in the consumer durables, auto, and banking sectors provided some cushion and ended with gains.

Investor sentiment was also weighed down by caution ahead of the US Federal Reserve’s policy announcement.

Market participants are closely watching US Fed Chair Jerome Powell’s remarks for any hints on future interest rate cuts and his views on the potential impact of rising crude oil prices on the US economy.

Additionally, India VIX, the volatility index also known as the market’s fear gauge, slipped 0.89 per cent to close at 14.27 -- indicating relatively stable investor sentiment.

- IANS