INDIA STOCKS-Indian shares open lower on weak global cues ahead of Fed rate decision

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds opening levels) BENGALURU, May 3 (Reuters) - Indian shares opened lower on Wednesday amid 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 0.48% to 18,061.42 as of 9:22 a.m. IST, while the S&P BSE Sensex lost 0.348%. Wall Street equities lost over 1% overnight, dragged by banking and energy stocks ahead of the Fed rate decision, while Asian equities remained subdued. The odds of the Fed hiking rates by 25 basis points is at 86.7%, as of 9:22 a.m. IST, according to the CME FedWatch tool. The S&P BSE Sensex has risen 3% over the last eight sessions, and closed at the highest level in over four months on Tuesday. The Nifty 50 has risen for six consecutive sessions amid corporate earnings for March quarter, and is in overbought territory, with a relative strength index of 73. 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. IndiGo airline operator Interglobe Aviation Ltd jumped over 7% while Wadia group stocks declined after Go First filed for bankruptcy on Tuesday. Brokerage Credit Suisse said that the decision can benefit Interglobe Aviation and lead to higher market share.


($1 = 81.7770 Indian rupees) (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Varun H K)

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