India's BSE Sensex closed about 0.5% down at 84,666 on Tuesday, the lowest since November 25, extending losses from the previous day. Market sentiment remained cautious ahead of the Federal Reserve’s rate decision on Wednesday and amid lingering uncertainty over a potential US-India trade agreement. While US Treasury Secretary Scott Bessent stated that Washington remains engaged in trade discussions with India, President Trump warned of possible rice tariffs during a White House event to announce a multi-billion-dollar farm relief package. At the same time, persistent selling by foreign investors continued to weigh, with overseas funds extending their withdrawal streak into December. Cyclical stocks were the hardest hit. Asian Paints (-4.6%) was the biggest laggard, followed by Tech Mahindra (-2%), HCL Technologies (-1.8%), Tata Steel (-1.6%) and Maruti Suzuki India (-1.2%). On the flip side, Eternal (+2.3%), Titan (+2.1%), Adani Ports (+1.1%) and BEL (+1%) advanced the most.