Market Tumbles Amid Middle East Tensions and Fed Speculation

The financial markets experienced a setback on Wednesday as benchmark indices Sensex and Nifty closed in the red. The decline is attributed to heightened tensions in the Middle East coupled with market caution ahead of the US Federal Reserve's interest rate announcement.

Surrendering its earlier gains, the Sensex closed 138.64 points down, at 81,444.66, while Nifty fell by 41.35 points to settle at 24,812.05. Tata Consultancy Services was the most significant loser among Sensex companies, with a 1.79% dip.

The market's cautious approach was further influenced by geopolitical uncertainties and volatile oil prices. Investors eagerly await the US Fed's policy statement, with many predicting no rate changes but watchful of commentary about global market worries.

(With inputs from agencies.)