Benchmark indices Nifty and Sensex fell for second day in a row. Metal and IT shares crashed, and the broader market mirrored weak trends and edged lower.

All eyes turn to the US Fed's policy outcome later today. While rates are expected to remain unchanged, the Fed’s commentary on the path ahead could be market-moving, especially in light of rising geopolitical tensions in the Middle East and recent U.S. tariff actions.

At close, the Sensex was down 138.64 points or 0.17 percent at 81,444.66, and the Nifty was down 41.35 points or 0.17 percent at 24,812.05. About 1486 shares advanced, 2342 shares declined, and 131 shares unchanged.

Experts say that the markets are nervous amid the rising risk of an escalation of conflicts in the Middle East and ahead of the FOMC meeting. This uncertainty pushed Brent crude prices higher—an unfavourable development for India, given its heavy reliance on oil imports, thereby dampening earnings growth. Further, the absence of any major domestic events and weak global cues will likely keep volatility elevated.

Experts say that the markets are nervous amid the rising risk of an escalation of conflicts in the Middle East and ahead of the FOMC meeting. This uncertainty pushed Brent crude prices higher—an unfavourable development for India, given its heavy reliance on oil imports, thereby dampening earnings growth. Further, the absence of any major domestic events and weak global cues will likely keep volatility elevated.

IndusInd Bank rose over 4 percent after global brokerage firm Nomura upgraded its rating on the stock to “buy.” It also raised the target price to Rs 1,050 from Rs 700, indicating a potential upside of 25 percent from current levels. According to Nomura analysts, most of the bank’s legacy problems have now been addressed. They expect return on assets (RoA) to reach 1 percent by FY27.

One MobiKwik Systems Ltd., the parent company of digital payments platform MobiKwik, fell as much as 8 percent as the mandatory six-month lock-in period for pre-IPO shareholders came to an end today. According to a note by Nuvama Alternative & Quantitative Research, around 3.8 crore shares are now eligible for trade following the expiry of the lock-in.

"Though Nifty 50 closed above 20-day SMA after a brief penetration, only 44 percent of Nifty 500 stocks managed to close above their respective 20-day SMAs. The figure is much less than that of last Friday's when Nifty had closed 0.5 percent below yesterday's close. This points to broad market weakness, and is consistent with our fear that a return of 24060 is a likely scenario on the Nifty. That said, we will expect to continue the 24840- 4770 region to attract bargain-hunting interest. While slippage past the same could amplify bearish fears, a collapse to 24060 may not unfold right away, with 24500 expected to step in," Anand James of Geojit Investments Limited said.

IndusInd Bank, Trent, Eicher Motors, Maruti Suzuki, and M&M were the top gainers on the Nifty. Laggards on the index included TCS, HUL, Adani Ports, JSW Steel, and Adani Enterprises.