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Indian shares edge lower ahead of Fed meet outcome; Reliance gains
June 14, 2017 / 7:12 AM / 5 months ago

Indian shares edge lower ahead of Fed meet outcome; Reliance gains

* NSE index trades 0.17 pct lower, BSE index down 0.08 pct

* Fed rate hike widely expected

* Nifty bank index down 0.33 pct

June 14 (Reuters) - Indian shares edged lower on Wednesday tracking tepid Asian markets ahead of the outcome of the U.S. Federal Reserve meeting, while index heavyweight Reliance Industries gained after its telecom unit reported strong April subscriber additions.

State-run lenders swung between gains and losses amid worries they would have to raise provisioning levels after the Reserve Bank of India on Tuesday identified 12 of the largest loan defaulters and said it will direct lenders to begin insolvency proceedings around them.

Analysts said the outcome from the Fed meeting later on Wednesday would set the near-term trend. Investors expect a 25 basis points interest rate hike, and more clarity on the rate path ahead as well as on plans to shrink the mammoth bond portfolio.

“The markets are in an uptrend with not too many signs of weakness, but caution remains ahead of the Fed policy”, Anupam Singhi, chief operating officer at William O‘Neil India, said.

The broader NSE index was down 0.17 percent at 9,590.40 as of 0645 GMT, while the benchmark BSE index was 0.08 percent lower at 31,078.19. The Nifty Bank index fell 0.33 percent following the RBI statement on Tuesday, while the Nifty PSU Bank index was up 0.5 percent.

Kotak Mahindra Bank lost 0.54 percent, while State Bank of India gained 0.23 percent.

Reliance Industries rose as much as 3 percent after industry data showed its telecom unit, Reliance Jio Infocomm, had added 3.9 million subscribers in April, the most among telecom companies. (Reporting by Vishal Sridhar in Bengaluru; Editing by Vyas Mohan)

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