Indian shares seen opening lower as Fed projects more rate hikes
BENGALURU — Indian shares are expected to drop at the open on Thursday, in line with Asian peers, after the U.S. Federal Reserve raised interest rates and forecast more hikes than markets had expected.
The Fed increased rates by 75 basis points on Wednesday – the third such rise in a row – and signaled that it would continue to raise borrowing costs to fight inflation.
India’s NSE stock futures listed on the Singapore exchange were down 0.8% as of 0212 GMT, while MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.4%.
The NSE Nifty 50 index ended 0.55% lower at 17,718.35 on Wednesday, while the S&P BSE Sensex slipped 0.44% to 59,456.78.
India’s central bank is due to meet next week to decide on its own path for monetary policy.
The government is in no hurry to push inflation – now hovering near 7% and eight-year highs – back to the central bank’s 4% medium-term target, for fear that aggressive rate hikes could hurt economic growth, two sources with direct knowledge of the matter said.
Stocks to watch:
** Reliance Retail, run by Indian billionaire Mukesh Ambani’s conglomerate Reliance Industries Ltd, is in advanced talks to get the rights for beauty retailer Sephora in India, the Mint newspaper reported on Wednesday.
** India’s air safety watchdog on Wednesday said it was extending a restriction on budget carrier SpiceJet Ltd’s flight departures until Oct. 29.
** India’s Tata Group may evaluate options to consolidate AirAsia India and Vistara under Air India to bring operational synergies among the three airlines, Moneycontrol.com reported, citing sources. (https://bit.ly/3Lvo8qJ)
** India expects investments of at least $25 billion under the government’s new plan to increase support for new semiconductor and display facilities.
** KPI Green Energy said on Wednesday it got an order for executing wind-solar hybrid power project of 5.40 MW.
** Spandana Sphoorty Financial on Wednesday approved a fund raising via non convertible debenture issue.
** Kirloskar Oil Engines said it will acquire balance stake of La Gajjar machineries.
** State Bank of India, the country’s largest lender, has set the coupon for its Basel III-compliant Tier II bonds maturing in 15 years at 7.57%, three merchant bankers said on Wednesday.
** Panasonic Energy India will consolidate related operations from factory in Vadodara to Pithampur. (Reporting by Nallur Sethuraman in Bengaluru; editing by Savio D’Souza)