Domestic stock markets Sensex and Nifty 50 are set to open lower today reflecting caution in global markets ahead of the U.S. Federal Reserve's policy decision. Asian markets showed mixed trends while Wall Street closed in red overnight. The Dow Jones recorded its ninth consecutive loss heightening investor concerns.

On Tuesday the Indian equity markets witnessed sharp declines with benchmark indices dropping over 1%. The BSE Sensex fell by 1064.12 points (1.30%) to close at 80684.45. Similarly the NSE Nifty 50 slipped by 332.25 points (1.35%) to settle at 24336.00.

Global Cues Impacting Indian Markets
Asian Markets: A Mixed Start
Following the decline on Wall Street Asian indices started the day with mixed performance. Japan's Nikkei 225 fell by 0.4% while the Topix index showed marginal gains of 0.1%. South Korea's Kospi index rose by 0.6% but its tech-heavy counterpart Kosdaq slipped 0.4%.

Gift Nifty Today
Gift Nifty a key indicator of Indian market sentiment was trading near 24365 levels this morning. This marks a 50-point dip compared to the previous Nifty Futures close hinting at a bearish opening for Indian indices.

Wall Street Performance
U.S. markets ended Tuesday in losses. The Dow Jones Industrial Average dropped by 267.58 points (0.61%) to close at 43449.90. The S&P 500 declined by 23.47 points (0.39%) to 6050.61 while the Nasdaq Composite fell by 64.83 points (0.32%) to 20109.06. These declines reflect heightened investor caution due to upcoming Fed rate decisions and mixed economic data.

Key Factors Driving the Downtrend
Federal Reserve Decision Looms
Investors globally are cautious as they await the Federal Reserve's latest monetary policy decision. Speculations about interest rate directions and inflationary pressures are creating uncertainties across financial markets.

Weakening Global Sentiment
Major economies including the U.S. are witnessing slower growth signals. This dampens investor confidence and impacts equity inflows into emerging markets like India.

Profit Booking in Domestic Indices
Tuesday’s sharp fall in Indian indices was partially driven by profit booking. The recent rallies made Sensex and Nifty vulnerable to corrections as traders looked to lock in gains amid uncertain global cues.

Sectoral Performance and Market Analysis
Banking & Financials: Heavyweights such as HDFC Bank and ICICI Bank witnessed sell-offs dragging down the indices.
IT and Tech: Despite global tech sector turbulence Indian IT majors like TCS and Infosys showed resilience but could not lift overall market sentiment.
Oil & Gas: With crude oil prices stabilizing stocks in the energy sector showed mixed performance.
Today’s Key Levels to Watch
Sensex Support & Resistance: 79800 and 81500 levels respectively.
Nifty 50: Immediate support is seen near 24200 while resistance may be faced around 24700.
Analyst Recommendations
Experts suggest that investors remain cautious and adopt a stock-specific approach. Volatility is likely to persist until the Fed announcement. Defensive sectors like pharmaceuticals and FMCG could provide safer bets in the current market environment.