Mumbai, Nov 3 (IANS): Indian equity markets on Thursday were pulled lower on the back of global cues, such as the US Fed's interest rate decision and uncertainty over the upcoming US presidential election.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down by 29.05 points or 0.34 per cent to 8,484.95 points. 

The barometer 30-scrip sensitive index (Sensex) of the BSE hit its lowest level in over 16 weeks.

It opened at 27,518.06 points, to close at 27,430.28 points -- down 96.94 points or 0.35 per cent, from its previous close at 27,527.22 points.

The Sensex touched a high of 27,600.74 points and a low of 27,399.26 points during the intra-day trade.

The BSE market breadth was skewed in favour of the bears -- with 1,775 declines and 1,174 advances.

On Wednesday, the benchmark indices had closed on a lower note, depressed by weak global cues.

The barometer index had declined by 349.39 points or 1.25 per cent, while the NSE Nifty lost 108.15 points or 1.25 per cent.

Initially on Thursday, the key equity indices opened on a flat note in sync with their Asian peers. 

The global markets remained cautious over the US Fed's Federal Open Market Committee (FOMC) meet decision on Wednesday, which indicated a possible rate-hike in December on the back of economic recovery, while keeping its short-term interest rate intact for the current month.

A hike in the US interest rates can potentially lead foreign portfolio investors (FPI) and funds away from emerging markets such as India. It is also expected to dent the business margins of corporates as access to capital from the US will become expensive.

Besides, positive domestic macro-economic data -- the Nikkei India Services PMI (Purchasing Manager's Index) -- released earlier during the day, could not cheer the equity markets.

The data showed a rise of the index to 54.5 in October from 52 in September, indicating a healthy growth in the services sector.

In addition, the Indian rupee weakened by three paise to 66.75 against a US dollar from its previous close of 66.72 to a greenback.

Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services, said: "The Indian markets were not entirely bereft of domestic cues, with textile, pharma and services getting brief fillips. But with global markets still on uncertain footing ahead of US elections, Indian stocks fluctuated."

"Little respite is expected until at least next week, but surprises from US jobs data or Bank of England (BoE), could allow markets let go off election worries, while consensus on GST (Goods and Services Tax) rates, could also give a distraction for domestic market."

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded with volatile sentiments throughout the session due to short covering at lower levels.

"IT and media-entertainment stocks witnessed selling pressure at higher levels from traders, while pharma, auto and oil-gas stocks traded with mixed sentiments due to short covering," Desai said.

"Textile, aviation, and FMCG stocks traded with mixed sentiments, while power stocks traded down on selling pressure. Volatile USD/INR futures prices brought volatility in the Indian equity markets in the intra-day session."

Sector-wise, the S&P BSE oil and gas index plunged by 219.50 points, followed by the healthcare index, which declined by 176.95 points, and the consumer durables index which receded by 104.37 points.

In contrast, the S&P BSE FMCG index rose by 10.96 points and the telecom index edged up by 7.48 points.

Major Sensex gainers during Thursday's trade were: Hero MotoCorp, up 1.66 per cent at Rs 3,379.50; ITC, up 1.29 per cent at Rs 240.35; DrReddy's Lab, up 0.71 per cent at Rs 3,281.50; Tata Consultancy Services (TCS), up 0.67 per cent at Rs 2,319.95; and HDFC Bank, up 0.56 per cent at Rs 1,253.

Major Sensex losers were: Adani Ports, down 3.92 per cent at Rs 288.10; ONGC, down 3.53 per cent at Rs 267.55; Tata Steel, down 2.50 per cent at Rs 403.30; Asian Paints, down 2.36 per cent at Rs 1,036.95; and State Bank of India (SBI), down 2.25 per cent at Rs 245.65.