Benchmark stock indices Sensex and Nifty fell in early trading on Thursday after two days of rallying, with investors staying on the sidelines ahead of the US Federal Reserve’s interest rate decision.

Market analysts said continued outflows of foreign funds and mixed global signals have further dented investor confidence.

The BSE Sensex lost 237.93 points to 80,140.20 in early trade. The NSE Nifty fell 109.1 points to 24,374.95.

Among the 30 Sensex stocks, Bajaj Finserv, UltraTech Cement, Power Grid, ICICI Bank, Bajaj Finance, Kotak Mahindra Bank, Adani Ports and Nestle were among the biggest laggards.

Tata Steel soared over 1 per cent after the company reported a net profit of Rs 758.84 crore for the September 2024 quarter.

HCL Technologies, Tata Consultancy Services and JSW Steel were also the gainers in the pack.

Foreign institutional investors (FIIs) dumped shares worth Rs 4,445.59 crore on Wednesday, according to stock exchange data.

In Asian markets, Seoul, Shanghai and Hong Kong traded higher while Tokyo traded lower.

Wall Street ended sharply higher on Wednesday.

“In overnight trading, Wall Street hit record highs, buoyed by optimism surrounding Trump’s presidency and hopes for increased fiscal spending and tax cuts to spur growth” , said Prashanth Tapse, senior vice president (research) at Mehta Equities Ltd.

Republican leader Donald Trump won the US presidential election for a second term, inflicting a shock defeat on his Democratic rival Kamala Harris, in one of the most remarkable comebacks in US electoral history, emerging from the political wilderness four years after his ouster from the country. White House and subsequent failed attempt to overturn the result of the 2020 election.

Global benchmark Brent crude rose 0.92 percent to $75.61 a barrel.

The benchmark BSE index jumped 901.50 points or 1.13 per cent to settle at 80,378.13 on Wednesday. The Nifty rose 270.75 points or 1.12 percent to 24,484.05.