The 30-share index ended the day at 28,523, down 111.30 points, while broad-based 50-share index quoted 8,775, down 32.50 points.The consensus is that the Fed will leave interest rates unchanged, but investors are looking for commentary and guidance for the next interest rate hike.
Meanwhile, the BoJ could make negative interest rates the primary focus of its monetary policy at the conclusion of its meeting on Wednesday.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.2 per cent after major US indexes ended a choppy session nearly flat on Monday. "It's more of a global phenomenon which is affecting the market," said RK Gupta, managing director, Taurus Asset Management.
Hero MotoCorp was the top loser on both the benchmark indices and lost over 2 per cent on the BSE.
The Nifty Auto index was down 0.70 per cent after rising about 23 per cent this year as of Monday's close.
Jubilant FoodWorks's shares fell as much as 8.21 percent to their lowest in over seven months after the company on Monday approved the resignation of Ajay Kaul as CEO-cum-whole time director.
(With inputs from Reuters)