Dalal Street remained volatile as investors booked profits across the sectors on Wednesday as nervousness ahead of a US interest rate decision pulled down global equity markets. Thursday’s expiry of monthly derivatives contracts also weighed on the sentiment. The 30-share Sensex of the Bombay Stock Exchange (BSE) closed at 17,758.64 points, posting a loss of 333 points or 1.84 per cent. Meanwhile, the broader S&P CNX Nifty of the National Stock Exchange (NSE) lost 113.2 points or 2.14 per cent before closing at 5,167.60 points.The US Federal Reserve is widely expected to announce its second interest rate cut in just over a week on Wednesday, but market confidence in an aggressive 50 basis point drop was waning. “Fed meeting is currently the most important event. If the Fed cuts rates by less than 50 basis points or doesn’t cut rates, markets will fall sharply tomorrow and investors won’t be able to cover positions. So there is some worry on that front,” said a dealer. The RBI on Tuesday left key rates steady, disappointing investors, who had been expecting a cut.
