Nifty marks 2-month closing low; Fed key

Nifty fell for a fourth consecutive session on Wednesday to its lowest close in two months, as banks were hit after ICICI Bank, the country’s biggest private lender, said bad loans had risen and it would set aside more funds. Overseas investors have sold shares worth $452 million since Thursday’s close amid turmoil in emerging markets.

Volumes on the BSE index sank to the lowest in four days, with caution also prevailing ahead of the conclusion of the US Federal Reserve's policy meeting later in the day.

The Fed is widely expected to continue reducing its monthly bond purchases by $10 billion a month.“I think the decision on tapering is crucial for global markets, including India. $5-10 billion is okay but anything beyond that would be a shock for us,” said Sudip Bandyopadhyay, managing director at Destimoney Securities Pvt Ltd.

The broader NSE index lost 0.1 per cent, or six points, to end at 6,120.25, its lowest close since November 28. The BSE index fell 0.18 per cent, or 36.21 points, to end at 20,647.30, extending its losing streak for a fourth session.