Indian shares were subdued in early trades on Wednesday, broadly tracking their Asian peers, as investors remained cautious ahead of the U.S. Federal Reserve’s guidance on future rate hikes later in the day.
- Advertisement -
The NSE Nifty 50 index was 0.05% lower at 18,135.85 as of 0350 GMT, and the S&P BSE Sensex fell 0.07% to 61,076.78. Gains in metal stocks were countered by losses in IT and automobiles.
Overnight, data showed an unexpected rise in U.S. job openings in September, tempering expectations that the Fed may slow the pace of interest rate hikes.
A 75-basis points hike on Wednesday is largely baked in but crucial for markets will be the Fed’s commentary on inflation and any guidance on the future rate hike plans.
- Advertisement -
Asian shares too wobbled in cautious trading ahead of the Fed’s policy outcome.
Traders also await the outcome of the Reserve Bank of India’s Thursday meeting that, Reuters reported, was most likely to discuss the central bank’s response to the government after failing to meet its inflation target for three quarters in a row.
In domestic trading, Nifty’s metal index was up 0.79%, while IT and automobile stocks dropped 0.15% and 0.19%, respectively.
- Advertisement -
Among stocks, Adani Transmission Ltd and Mahindra & Mahindra Financial Services Ltd were down 0.6% and 1.3%, respectively, while Jindal Stainless Ltd was up 2.3% ahead of their quarterly results later in the day.
