Mumbai: Benchmark indices ended in the red for the third straight session and the rupee settled at a record low as FIIs continued to press the sell button and investors remained apprehensive over the Fed’s commentary on the interest rate trajectory ahead.

While the Sensex crashed 502.25 points or 0.62 per cent to end at 80182.20, the rupee ended at a historic low of 84.95 against the dollar after falling to an all-time intra day low of 84.9550.

The domestic currency was hit by dollar demand from importers and continued sales by FIIs in the equity markets. Provisional data showed them offloading stocks worth ₹1,317 crore on Wednesday. This comes after they sold more than ₹6,000 crore on Tuesday.

US stock index futures edged up on Wednesday, as markets eagerly awaited the Federal Reserve’s final rate decision of the year and signals on whether policymakers will take a more cautious stance in 2025.

Market circles said that all eyes were on the Fed’s decision which will be announced Wednesday night.

Though the markets have priced in a 25-basis-point cut in interest rates — the third consecutive reduction — they remain cautious on whether there will be another relaxation in January.

The fear is that the Fed is likely to indicate a slower pace of lowering borrowing costs. Any such hawkishness could be taken negatively by the markets.

“The near-term market construct has turned weak, with FIIs turning sellers on rallies. Tuesday’s massive FII sell figure of ₹6,410 crore in the cash market indicates that more selling is in store on market bounces. The focus of global markets on Wednesday will be the Fed decision. A 25 bps rate cut is priced in by the market. So, the attention will be on the Fed commentary,” V.K. Vijayakumar, chief investment strategist, Geojit Financial Services, said.

The 30-share Sensex opened on a lower note at 80666.26 and plummeted 634.38 points during intra-day trades to touch a low of 80050.07. It later ended with loss of 502.25 points to end at 80182.20. On the NSE, The Nifty declined 137.15 points to 24198.85.

From the Sensex group, Tata Motors was the top loser with its shares falling 3.03 per cent. It was followed by Power Grid, NTPC, Adani Ports, JSW Steel, ICICI Bank, Larsen & Toubro and Bajaj Finance which declined up to 2.56 per cent.

On the winning front, eight stocks ended in the green with Reliance Industries leading the list. Shares of the oil-to-telecom giant ended 0.64 per cent higher on Wednesday.

In the broader market, the BSE smallcap index declined 0.76 per cent, and the midcap gauge dipped 0.61 per cent. Among sectoral indices, utilities tanked 2.06 per cent, power (1.78 per cent), capital goods (1.56 per cent), metal (1.44 per cent), industrials (1.30 per cent) and financial services (1.20 per cent).

Re falls

The rupee too felt the impact of the impending Fed decision as it remained under pressure with the US dollar gaining overseas.

The Dollar Index which measures its strength against six other units was trading firm at 106.99 against the last close of 106.96.

Jateen Trivedi, VP research analyst — commodity and currency, LKP Securities — said any hawkish surprise from Fed chair Jerome Powell could strengthen the dollar, whereas dovish comments might provide some respite to the rupee.

``Rupee movement will hinge on the policy’s outcome and subsequent global market reaction… While a 25 basis points rate cut is expected, the critical focus will remain on forward guidance and the tone of Fed Chair Powell’s remarks,’’ he added.