The benchmark Sensex on Tuesday plummeted over 1064 points as jittery investors unloadeas jittery investors unloaded stocks ahead of crucial interest rate decisions by three central banks..

Investors were also rattled by Monday’s announcement that India’s trade deficit had climbed to an all-time high of $37.8 billion in November.

This sell-off in stocks and widening of the trade deficit also put pressure on the rupee which ended at record lows against the dollar. At the inter-bank forex market, the domestic currency settled at 84.90 compared with its previous close of 84.86.

The rupee hit a record intraday low of 84.93. Forex experts feel that the rupee could touch the 85 over the coming days though the Reserve Bank of India (RBI) may ensure a gradual or orderly depreciation for the currency.

The US Federal Reserve will announce its interest rate decision on Wednesday. While a 25-basis point cut is largely factored in, the marketsare apprehensive about its guidance which could be hawkish.

“The Fed will cut this week by 25 basis points. But will likely pause at the January meeting. It’s not just the inflation data, it’s the unknowns coming from the beginning of the Trump administration post the 20th January inauguration,’’ ING Bank said.

Eyes on Zomato

Zomato could see inflowsof $513 million as it entersthe Sensex club on December 23 as part of a rejig thatwas announced last month, brokerage Nuvama has forecast. Zomato will replace JSW Steel.

Shares of Zomato on Tuesday ended 0.87 per cent higher at ₹296.80 on the BSE. It has risen more than 57 per cent over six months and nearly 131 per cent during the past year.