India's BSE Sensex closed about 0.2% down at 84,628.2 on Tuesday, as profit-taking set in after the index’s recent rally to a 13-month high and as caution prevailed ahead of the Fed's policy outcome. Consumer and IT sectors weighed on the market, whereas metal shares advanced amid renewed optimism over a potential US-China trade deal. Public sector banks also moved up, climbing 1.2% to record highs, following reports that the government could raise the foreign investment limit in state-run banks to 49%. Trent, Tech Mahindra, Bajaj Finserv, HCL Technologies, Mahindra & Mahindra, ICICI Bank, Bajaj Finance and Tata Consultancy Services were among the major laggards, shedding between 0.8% and 1.4%. By contrast, Tata Steel, Larsen & Toubro, State Bank of India, Kotak Mahindra Bank posted the biggest gains. Notably, Tata Steel surged nearly 3% gain, after Motilal Oswal upgraded it to "buy" from "neutral", citing a strong domestic outlook.