Indian shares seen muted on Fed rates confusion

Indian shares are poised to open little changed on Thursday, after the Federal Reserve left the key interest rate unchanged as expected but its ​chair pledged an unwavering commitment to bring inflation down, leaving investors ‌confused.

Asian stocks were choppy after Wall Street equities and the dollar slipped overnight after the Fed decision, which drew dissent from three of the 12 members of the ​rate-setting committee.

No Fed Chair before Kevin Warsh has faced such dissents ​so early in their tenure since the 1970s.

“The split among policymakers ⁠reinforces expectations that the path of future rate cuts remains highly data ​dependent,” said Ponmudi R, CEO of Enrich Money.

In the aftermath of the decision, ​gold prices advanced as investors adopted a more defensive stance amid continued policy uncertainty and geopolitical risks, Ponmudi said.

India’s GIFT Nifty futures were at 24,209.50 as of 8:03 a.m. ​IST, indicating the benchmark Nifty 50 could open near Wednesday’s close of ​24,250.20.

Brent crude fell 1.4%, hovering around $90 a barrel, after rising 7.9% in the previous ‌session.

The US-Iran ⁠war escalated, spreading beyond its main fronts, while oil tankers continued to make their way out of the Middle East.

US-Saudi strikes hit Iran-backed paramilitary forces in Iraq on Wednesday, in retaliation for drone attacks on Saudi oil targets ​launched from Iraq.

Indian ​share benchmarks gained ⁠more than 1% in the previous session, led by IT stocks, which benefited from the unravelling of the AI-driven ​rally across US and other Asian markets.

Foreign portfolio investors have ​bought ⁠shares worth $1.02 billion in July so far, on course to snap a four-month selling streak.