Banks drag Indian shares as China tensions, Fed weigh

Indian shares opened lower on Thursday, dragged down by banking and IT stocks, as China tensions remained in focus, while sentiment was subdued after the US Federal Reserve failed to offer further stimulus.

The blue-chip NSE Nifty 50 index fell 0.39 per cent to 11,559.10 and the benchmark S&P BSE Sensex was down 0.45 per cent at 39,127.37 by 0349 GMT. Both indexes have risen 1.2 per cent so far this week.

Indian officials said on Wednesday Indian and Chinese border troops had an exchange of gunfire last week just days before a meeting of their foreign ministers.

Sentiment was also dampened as broader Asian markets fell after the Fed pledged to keep interest rates low for a long time but stopped short of offering further on stimulus for the US economy.

In domestic trading, the Nifty Bank Index fell 1.01 per cent, while the Nifty IT index fell 0.51 per cent. HDFC Bank Ltd and Tata Consultancy Services Ltd were among the top drags on the Nifty 50.