Markets slump over 1% amid widespread selloff; Sensex sinks below 81k

Equity benchmark indices Sensex and Nifty slumped over 1% on Tuesday, weighed down by an across-the-board selloff amid cautious investors' approach ahead of the US Fed interest rate decision.

Falling for the second day in a row, the 30-share BSE benchmark Sensex tanked 1,064.12 points or 1.30% to settle at 80,684.45. During the day, it slumped 1,136.37 points or 1.39% to 80,612.20.

The NSE Nifty tumbled 332.25 points or 1.35% to 24,336.

From the 30-share blue-chip pack, all firms ended in the red. Bharti Airtel, IndusInd Bank, JSW Steel, Tata Consultancy Services, Asian Paints, Larsen & Toubro, Reliance Industries and HDFC Bank were the biggest laggards.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled lower.

European markets were mostly trading in negative territory. Wall Street ended mostly higher on Monday.

"Widespread pessimism prevails across all sectors ahead of key policy decisions from the US Fed, BoJ (Bank of Japan), and BoE (Bank of England). While the market has already factored in a 25 bps cut from the US Fed, it remains vigilant for any hawkish signals. The BoJ and BoE are largely expected to maintain their current rates for the year.

"Concurrently, the rupee has depreciated to an all-time low, and a record-high trade deficit is exacerbating the pressure," Vinod Nair, Head of Research at Geojit Financial Services, said.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹278.70 crore on Monday, according to exchange data.

Global oil benchmark Brent crude declined 0.50% to $73.58 a barrel.

The 30-share gauge declined 384.55 points or 0.47% to settle at 81,748.57 on Monday. The Nifty lost 100.05 points or 0.40% to 24,668.25.