Indian Shares Remain Under Pressure as Fed Rate Hike and Oil Prices Weigh on Sentiment
Domestic equities opened largely subdued on September 17 as investors assessed tighter US monetary policy, elevated crude prices and ongoing market activity.
Mumbai, Sep 17 : Indian equities remained under pressure on Thursday as investors reacted to the US Federal Reserve’s latest interest-rate decision and continued concerns over elevated crude oil prices.
The Nifty 50 slipped around 0.1 per cent to 23,195.25 in early trading, while the BSE Sensex declined 0.21 per cent to 74,182.62, according to Reuters.
The market response came after the Federal Reserve raised its benchmark interest rate by 25 basis points on September 16, marking its first rate increase in more than three years. The US central bank also indicated that further tightening could follow as policymakers seek to contain persistent inflation.
Higher US interest rates can influence global capital flows and put pressure on emerging-market currencies and equities. Investors in India were also monitoring developments in the oil market amid continued tensions around the Strait of Hormuz.
Brent crude was trading near $106 a barrel on Thursday, although prices eased slightly after Saudi Arabia offered additional oil cargoes through Oman. Persistent uncertainty over regional supply routes continued to remain a concern for energy importing economies.
The rupee was quoted at around Rs 95.95 against the US dollar, while the information technology sector came under pressure amid concerns about the impact of weaker US demand for software services.
Market participants were also watching developments in India’s primary market, including the opening of the National Stock Exchange’s much anticipated initial public offering.
The combination of global monetary tightening, oil market uncertainty and currency movements is expected to remain important for domestic investors as they assess corporate earnings and economic conditions.
