At close, the Sensex was down 49 points at 19,733 and the Nifty was relatively unchanged at 5,851.
For most part of the trading session, the Nifty was range bound between 5,823-5,884.
in the broader markets, the mid and smallcap indices gained 0.6% each, outperforming the BSE benchmark index which closed in the negative 0.3%.
Next week, US Federal Reserve will decide to cut its $85 billion in monthly bond purchases when it meets on September 17-18 while the Bank of England’s minutes of the meeting will be released on September 18 that will give a hint of the health of UK's economy.
Domestically, the Reserve Bank of India will unveil its mid-quarter policy due on September 20 under the governorship of newly appointed Raghuram Rajan.
Rupee
The rupee continued to trade weak amid dollar demand by importers. However, the rupee recovered from its so far intra-day low of Rs 64.10 due to dollar sale by state-run banks acting on behalf of the Reserve Bank of India.
At 1600 hours, the partially convertible rupee was trading at 63.53 per dollar against the yesterday’s close of 63.54 on the Interbank Foreign Exchange.
Global Markets
Dollar rose after Japan's Nikkei newspaper said U.S. President Barack Obama will name former Treasury Secretary Lawrence Summers as chairman of the Federal Reserve Board, while gold and oil declined as the Syrian chemical weapons crisis abated.
MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.8 percent, pulling further away from a three-month high and on track for a second losing day after a 10-day winning streak.
In Tokyo, the Nikkei share average edged up 0.1 percent, supported by its five-day moving average.
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