Indian shares volatile ahead of U.S. Fed meeting

Last Updated 18 June 2019, 06:32 IST

Indian shares edged higher on Tuesday ahead of the U.S. Federal Reserve's two-day interest rate meeting later in the day, while crude prices softened on concerns around global growth.

The broader NSE index was unchanged at 11,671.85 as of 0414 GMT, while the benchmark BSE index was up 0.07% at 38,987.23.

The Fed is expected to leave interest rates unchanged after its policy meeting this week, even as President Donald Trump pressed fresh demands for a rate cut.

Asian markets were wobbly on investor caution ahead of the meet, with the MSCI's broadest index of Asia-Pacific shares outside Japan moving up 0.2%.

"The Fed meeting is what everyone has their eye on, apart from the upcoming G20 summit, which is likely to see a reaction from the market players," said Gaurav Arora, Head of Region, Asia Pacific & Middle East at Greenwich Associates.

"The markets have not really seen much significant news come out lately, in order to react in a big way."

In early trade on Tuesday, the NSE index tested support at 11,667.92, the 100% projection level of the correction from June 3 high to June 7 low (wave A) but failed to break it. Technical charts further indicate that the index is biased to break above resistance at 11,722.5.

The IT sector was the top boost, rising 0.55%, on a volatile day with the India VIX index up 1.76%.

The Nifty FMCG index was lower after New Delhi slapped tariffs on 28 U.S. goods, including almonds, apples and walnuts from Sunday.

Airlines such as Spicejet and Interglobe Aviation rose between 2% and 5% after Jet Airways lenders sought bankruptcy for the airline in the last ditch effort to recover some of their dues. Jet shares fell 10%, extending their losing streak to nine days.

The airline's largest lender State Bank of India was also lower by 1%.

IT sector heavyweight Infosys rose over 1% on a weaker rupee, which fell 0.14% against the dollar.

(Published 18 June 2019, 05:33 IST)

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