Mumbai, Dec 17 (IANS): Ahead of key policy decisions especially from the US Federal Reserve, the Indian stock market closed in red on Tuesday as selling was seen in the PSU bank, auto, IT, financial service, pharma, FMCG, metal, and realty sectors of Nifty.

At closing, Sensex settled at 80,684.4, down by 1,064.12 points or 1.30 per cent and Nifty ended at 24,336, down by 332.25 points, or 1.35 per cent.

According to market experts, widespread pessimism prevails across all sectors ahead of key policy decisions from the US Fed, Bank of Japan, and Bank of England.

While the market has already factored in a 25 bps cut from the US Fed, it remains vigilant for any hawkish signals, experts added.

Nifty Bank ended at 52,834.80, down by 746.55 points, or 1.39 per cent.

The Nifty Midcap 100 index closed at 59,101.90 at the end of trading after dropping 341.15 points, or 0.57 per cent.

Nifty Smallcap 100 index closed at 19,398.45 after dropping 132.60 points or 0.68 per cent.

On the Bombay Stock Exchange (BSE), 1,578 shares ended in green and 2,440 in red, whereas there was no change in 89 shares. On the sectoral front, buying was seen in the media sector of Nifty.

In the Sensex pack, Bharti Airtel, IndusInd Bank, JSW Steel, TCS, Asian Paints, L&T, Bajaj Finserv, Reliance, Nestle India, HDFC Bank, Maruti, M&M, Tata Steel, and Power Grid were the top losers. Only ITC was among the top gainers.

The rupee traded flat near 84.90 as markets remain focused on the Fed’s final policy decision of the year scheduled for December 18.

"A dovish tone could push the dollar index lower, providing relief for the rupee. However, any uncertain or hawkish remarks may strengthen the dollar and keep participants bearish on the rupee. The rupee's range is anticipated between 84.75 and 85.05," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.