Indian shares hold near record highs ahead of Fed policy decision
Updates to close
By Bharath Rajeswaran
Sept 17 (Reuters) -Indian shares held near all-time highs, trading in a narrow range on Tuesday, a day ahead of the U.S. Federal Reserve's widely expected interest rate cut and commentary.
The Nifty 50 index .NSEI rose 0.14% to end at 25,418.55, with its 89.4-points trading range the smallest in two weeks.
The S&P BSE Sensex .BSESN gained 0.11% to close at 83,079.66.
"While the undertone of Indian markets is optimistic, there is some tentativeness among investors at all-time high levels ahead of the key Fed rate decision," said Sameet Chavan, head of research at Angel One.
While the Fed is widely expected to cut rates on Wednesday, after Indian markets close, the uncertainty is over the size of the cut: 25 basis points or 50 basis points.
The odds of a 50-bps cut have climbed recently -- to 67% from 50% last week -- raisingthe chances of foreign investors shifting funds to emerging markets such as India in search of higher returns.
However, the likelihood of a bigger rate cut has also prompted fears that the Fed may have started its easing cycle a little too late.
The Fed's decision and commentary on growth will influence the near-term trajectory of Indian equities since those will impact foreign inflows and the outlook for U.S.-dependent sectors such as IT and pharma, three analysts said.
IT stocks .NIFTYIT rose 0.14%, while pharma .NIPHARM dipped 0.3%, on the day. Overall, eight of 13 sectors rose.
But the small- .NIFSMCP100 and mid-caps .NIFMDCP100 dipped 0.37% and 0.13%, respectively.
Among individual stocks, Bajaj Housing Finance BAJO.NS jumped 10%, adding to the housing finance company's 136% surge in its trading debut on Monday.
E-scooter maker Ola Electric OLAE.NS advanced 9.63% after BofA Securities and Goldman Sachs initiated coverage with "buy" ratings.
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Nivedita Bhattacharjee, Sonia Cheema and Savio D'Souza
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
