Sensex, Nifty End Down Over 1%

Indian shares succumbed to heavy selling pressure on Wednesday as new Covid-19 cases continued to rise in the country and investors awaited the U.S. Federal Reserve policy outcome.

India recorded 28,903 fresh Covid-19 cases since yesterday, the highest daily rise since December 11.

U.S. benchmark Treasury yields ticked up in early London trade and Euro zone bond yields also inched higher as investors awaited cues from a two-day Federal Reserve meeting.

The U.S. central bank is widely expected to leave interest rates unchanged, but traders will be paying close attention to any changes in the accompanying statement.

The benchmark 30-share BSE Sensex ended down 562.34 points, or 1.12 percent, at 49,801.62 while the broader NSE Nifty index dropped 189.15 points, or 1.27 percent, to 14,721.30.

Coal India, Adani Ports, Tata Motors, ONGC and BPCL fell 4-5 percent in the Nifty pack, while ITC rallied 1.5 percent on reports the company is readying a demerger plan.

Tata Communications plunged 6.3 percent as its two-day offer for sale kicked off.

SBI Cards and Payment Serves gave up 5 percent on reports that U.S. private equity fund CA Rover Holdings will sell 4 percent stake in the company via a block deal.

Godrej Properties lost 2.4 percent after raising Rs 3,750 crore through sale of shares to institutional investors.

Markets fell across Asia and Europe as investors waited to see whether the Fed will push back market expectations that an interest rate increase could come as soon as the end of next year.