Indian shares flat at the open ahead of Fed policy decision
Updates at 9:18 a.m. IST
BENGALURU, Sept 18 (Reuters) -Indian shares were flat at the open on Wednesday and are expected to tread water through the session ahead of the U.S. Federal Reserve's rate decision and commentary.
The Nifty 50 index .NSEI was down 0.07% at 25,396.2 points, while the S&P BSE Sensex .BSESN shed 0.1% at 82,997.04, as of 9:18 a.m. IST.
Other Asian markets were also muted. MKTS/GLOB
While the Fed is widely expected to lower rates, the size of the cut, whether 25basis points or 50 bps, was still not clear.
The odds of a 50-bps cut have climbed to 65% from 34% last week.
While a bigger rate cut boosts the likelihood of foreign investors shifting funds to emerging markets such as India in search of higher returns, it has also prompted fears that the Fed may have delayed the start of its easing cycle a little too long, at the cost of economic growth.
The Fed's reason for its decision and its commentary on future policy will influence the near-term trajectory of Indian equities in terms of foreign inflows and the outlook for U.S.-dependent sectors such as IT and pharma, three analysts said.
Eight of the 13 major sectors logged gains. The small- .NIFSMCP100 and mid-caps .NIFMDCP100 were little changed.
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Savio D'Souza and Nivedita Bhattacharjee
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