Indian shares subdued ahead of Fed rate hike decision

Reuters | | Updated on: Jun 15, 2022

The NSE Nifty 50 index was down 0.2% at 15,698.4, while the BSE index fell 0.2% to 52,602.4

Indian shares were muted in early trade on Wednesday, with energy and metal stocks down, as global investors treaded cautiously in anticipation of aggressive rate hike actions by the US Federal Reserve later in the day. The NSE Nifty 50 index was down 0.2 per cent at 15,698.4 by 0408 GMT, while the BSE index fell 0.2 per cent to 52,602.4.

Analysts expect a 50-basis-point hike at the Fed meeting later in the day, but the possibility of a 75-bp raise has grown after Friday's higher-than-expected consumer price index (CPI) data for May. India's central bank had last week raised the key interest rate by 50 basis points as widely expected, in a bid to cool persistently high inflation in Asia's third-largest economy.

Wholesale inflation

India's wholesale inflation for May saw a 15.88 per cent rise in May, while retail inflation eased to 7.04 per cent, data showed earlier this week. Network18 Media and Investments rose 2.3 per cent after Viacom18, in which Network 18 owns a majority stake, won digital streaming rights for the Indian cricket league IPL from 2023 to 2027.

Shares of One97 Communications were up over 2 per cent after the company's average monthly users on its PayTM super app rose 48 per cent for two months ending May.

Published on June 15, 2022
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