Indian shares ended sharply lower on Tuesday as the dollar remained stubbornly strong and Treasury yields hovered near four-month highs ahead of Wednesday\'s FOMC rate decision.
The U.S. central bank is almost certain to leave its benchmark interest rate unchanged, but the focus will be about what Fed officials say about lowering rates.
Recent hotter-than-expected consumer and producer price inflation readings have reduced optimism about the likelihood of the Fed\'s first-rate cut coming in June.
Rising oil prices on signs of tighter supply and concerns surrounding high valuations in the small and mid-cap sectors also weighed on investor sentiment.
The benchmark S&P BSE Sensex ended the session down 736.37 points, or 1.01 percent, at 72,012.05 while the broader NSE Nifty index settled at 21,817.45, down 238.25 points, or 1.08 percent, from its previous close.
TCS slumped 4.4 percent on the buzz that Tata Sons will offload a minority stake in the company via a block deal.
According to stock exchange data, a little over 2 crore shares, or about 0.6 percent equity of the software services exporter, was sold via a block deal.
IndusInd Bank, Britannia Industries, Cipla and BPCL lost 3-4 percent while Bajaj Finance and Bajaj Auto ended up over 1 percent.