Mumbai, Dec 18 (IANS): The domestic benchmark indices closed in red on Wednesday amid weak global cues as market sentiment remained cautious ahead of the key US Fed meeting.

US Fed Chair Jerome Powell was set to release the policy statement late on Thursday (US time) during the Federal Open Market Committee (FOMC) meeting.

According to experts, the Indian market is experiencing a breakdown in the early Santa Claus rally, with the impact being more pronounced in India compared to developed markets due to the rapid appreciation of the dollar.

Market sentiment remains cautious which is further influenced by India's premium valuation, which is significantly above the current earnings growth trajectory that has slowed over the last two quarters.

On Wednesday, heavy selling was seen in the media, PSE, PSU Bank, financial service, metal, private bank and commodities sectors of the Nifty at the end of trading.

At closing Sensex settled at 80,182.20 down by 502.25 points, or 0.62 per cent and Nifty ended at 24,198.85 down by 137.15 points, or 0.56 per cent.

Nifty Bank ended at 52,139.55, down by 695.25 points or 1.32 per cent. The Nifty Midcap 100 index closed at 58,723.25 at the end of trading after dropping 378.65 points or 0.64 per cent.

Nifty Smallcap 100 index closed at 19,230.35 after dropping 168.10 points or 0.87 per cent.

On the Bombay Stock Exchange (BSE), 1,447 shares ended in green and 2,558 in red, whereas there was no change in 94 shares.

On the sectoral front, buying was seen in the pharma, healthcare and IT sector of Nifty.

In the Sensex pack, Tata Motors, Power Grid, NTPC, JSW Steel, ICICI Bank, L&T, Bajaj Finance, HDFC Bank, Axis Bank and SBI were the top loser. While TCS, Sun Pharma, Tech Mahindra, HCL Tech, M&M, ITC and Infosys were the top gainers.

The rupee closed at 84.95, which is its all-time low against dollar.