Indian shares are seen opening lower on Wednesday, tracking mixed Asian cues as investors await the outcome of the Fed meeting. Traders will be looking for hints as to the pace and the precise timing of an exit from its bond-buying program, although speculation is rife that the Fed will maintain the status quo. The Indian rupee fell by 90 paise to close at a record low of 58.77 yesterday on concerns over the rapid shift in risk perceptions and its impact on capital flows.
Indian shares drifted lower on Tuesday, with mixed global cues and fresh weakness in the rupee weighing on the markets. The benchmark BSE Sensex closed down 103 points or 0.53 percent at 19,223, while the broader Nifty index fell by 36 points or 0.62 percent to 5,814.
In corporate news, telecom stocks could be in focus after Vodafone India cut 2G data charges by 80 percent in three circles.
The long-pending dispute between NTPC and Coal India over the terms and conditions for signing fuel supply agreements is likely to be resolved, media reports suggest.
Religare Enterprises' promoters have decided to dilute their shareholding to 49 percent to meet the guidelines for licensing of new banks in the private sector.
Asian Markets
The Asian markets are trading mixed with all eyes on Fed Chairman Ben Bernanke's press conference scheduled for today. With consumer inflation remaining under control, the Fed is expected to maintain its stimulus measures until it sees substantial improvement in employment.
Japan's Nikkei index is rallying 1.2 percent, thanks to positive cues from Wall Street, encouraging export data and a weaker yen ahead of Fed policy decision. The markets in China, Hong Kong, Indonesia, New Zealand, Singapore and South Korea are subdued, while stocks elsewhere are posting modest gains.
U.S. And European Markets
The major U.S. averages rose about a percent each on Tuesday as soft inflation data suggested the Federal Reserve will maintain a status quo on interest rates. Housing starts rose 6.8 percent to an annual rate of 914,000 in May following a 14.8 percent drop in the previous month, while consumer prices rose slightly in the month following two months of declines, separate reports showed.
European stocks ended Tuesday's session on a mixed note, as investors digested better-than-expected German investor sentiment data and waited for clarity on the future course of Fed policy. The German DAX rose 0.2 percent and the U.K.'s FTSE 100 advanced 0.7 percent, while France's CAC 40 slipped 0.1 percent and Switzerland's SMI dropped 0.4 percent.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.