Sensex, Nifty retreat from record highs

Mumbai: Key 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. Vinod Nair, head (research) at Geojit Financial Services, said: "Indian indices slipped ahead of the Fed policy announcement as global markets turned cautious. Weakening MoM sales data and rising prices in the US are adding concerns to ongoing inflationary trend. But Fed maintaining an accommodative policy and a calm comment on short-term inflationary pressure can drive the markets ahead."

"Metal stocks are witnessing profit booking from the intra-day high after the news came that China will soon release some base metals from state stockpiles. As per the recent media report the activity is picking up in the passenger vehicle market after several weeks as states have started unwinding restrictions," adds Mohit Nigam, Head, PMS - Hem Securities, said.

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.

Chice Broking in a note said that the domestic market took cues from the weak global market ahead of the US Fed's decision. The broader Nifty declined due to broad-based selling across counters, especially metals and financials stocks.