By Bharath Rajeswaran
BENGALURU (Reuters) -Indian shares declined on Wednesday on weaker global cues, as caution prevailed across markets ahead of the U.S. Federal Reserve’s rate decision later in the day.
The Nifty 50 was down 0.39% to 18,074.50 as of 9:45 a.m. IST, while the S&P BSE Sensex lost 0.40%.
Ten of the 13 major sectoral indexes declined with high weightage financials and information technology (IT) losing over 0.5% and 1%, respectively.
Wall Street equities lost over 1% overnight, dragged by banking and energy stocks ahead of the Fed rate decision due at 11:30 p.m. IST. Asian equities remained subdued. [MKTS/GLOB]
The odds of the Fed hiking rates by 25 basis points is at 86.7%, as of 9:45 a.m. IST, according to the CME FedWatch tool.
While the earnings and commentary on client spending from information technology companies were lacklustre, high-weightage financials have reported mostly strong results, two analysts said.
“We may see some consolidation due to caution ahead of the outcome of the Fed meet,” said Ajit Mishra, vice president – technical research at Religare Broking.
Analysts expected stock-specific action to continue amid a slew of corporate earnings.
“18,200 levels for the Nifty 50 would be a psychological landmark and the benchmark can witness some resistance or consolidation,” said Vaishali Parekh, vice president – technical research at Prabhudas Lilladher.
Among individual stocks, IndiGo airline operator Interglobe Aviation Ltd jumped over 7% while Wadia group stocks such as Bombay Burmah Ltd and Bombay Dyeing lost between 2% and 6%, after Go First filed for bankruptcy on Tuesday.
Brokerage Credit Suisse said the decision can benefit Interglobe Aviation and lead to a higher market share.
Upstream oil company Oil and Natural Gas Corporation Ltd lost over 1% and was among the top Nifty 50 losers on a sharp fall in crude oil prices. [O/R]
($1 = 81.7770 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Varun H K and Janane Venkatraman)
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