BENGALURU: Indian shares were treading water on Wednesday as investors braced for a hefty rate hike from the US Federal Reserve and clues on further hikes.
The NSE Nifty 50 index rose 0.04% to 17,822, while the S&P BSE Sensex was flat at 59,732.61 at 0347 GMT. The Fed is set to announce its decision at the end of a two-day policy meeting later in the day.
Rate futures traders are pricing in an 81% chance of a 75-basis-point hike and a 19% probability of a jumbo 100 bps increase.
Meanwhile, India’s government is in no hurry to push inflation - now hovering near 7% and eight-year highs - back to the central bank’s 4% medium-term target, for fear that aggressive rate hikes could hurt economic growth, two sources with direct knowledge of the matter said.
Indian shares rise 1% as global markets recover; Fed in focus
Among stock, shares of Central Bank of India jumped 12% after the Reserve Bank of India took the state-owned commercial bank off its prompt corrective action list.
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