BENGALURU: Indian shares are set to open marginally higher on Wednesday, tracking a rise in global stocks ahead of the US Federal Reserve’s policy decision.
India’s GIFT Nifty was down 0.15% at 19,133.50 as of 8:16 a.m. IST, but still above the Nifty 50’s Tuesday close of 19,079.60. The benchmarks opened higher in the previous session too, before reversing gains and settling lower.
The Nifty 50 and Sensex lost nearly 3% each last month, as elevated US interest rates triggered persistent sales by foreign investors, while a rise in oil prices due to the Middle East conflict also added to the selling pressure.
Wall Street equities closed higher overnight, ahead of the Fed’s policy decision on Wednesday and US monthly jobs data due on Friday. Asian markets rose.
The Fed is widely expected to hold rates, but Chair Jerome Powell’s commentary will be key.
“Recent economic indicators from the US suggest a persistent expansion in the economy,” said Jayden Ong, senior market analyst, Asia Pacific at Vantage, adding “The anticipation is that the Fed will uphold the current interest rate base point.”
Indian shares drop as IT stock slide ahead of Fed decision
The Fed’s rhetoric of higher-for-longer rates has helped send US Treasury yields to multi-year highs, making them more attractive for investors.
As a result, foreign investors have offloaded 245.48 billion Indian rupees ($2.95 billion) worth of Indian shares in October, the most for any month since January.
Also in focus will be the market reaction to the results of Nifty 50 companies.
Larsen & Toubro topped second-quarter profit estimates, aided by growth in infrastructure projects, while Tata Consumer Products also beat estimates in the September quarter, supported by price hikes.
Bharti Airtel, on the other hand, saw a drop in second-quarter profit, hurt by a one-time charge, but its revenue rose 7.3%, aided by subscriber growth.
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