Sensex, Nifty Drop 3rd Day; Midcap Rout Deepens Ahead of Fed Meet

• Sensex and Nifty dropped for the third consecutive session, with the Nifty 50 falling below 25,800 and the Sensex down 275 points.
• Midcap stocks experienced deeper cuts, and financial stocks weakened, contributing to the market decline ahead of the US Fed meeting.
• Global cues, including rising Japanese bond yields and potential Bank of Japan tightening, intensified volatility and drove risk-off moves.
• Electronics manufacturing, midcap IT, and airline stocks saw sharp declines, while metals outperformed on US rate cut expectations.
• Analysts noted persistent foreign fund outflows, a weak rupee, and uncertainty in US-India trade discussions as factors impacting Indian markets.

Why It Matters: Market decline impacts investor wealth and signals broader economic uncertainty.