Indian shares closed down on Wednesday tracking Asian cues and firm dollar ahead of the US Federal Reserve monetary policy review, which is widely perceived to raise policy interest rates by 25 bps.
The 30-share benchmark Sensex opened flat at 29452.86 and rose to 29500.08 or 0.2% in intra-day trade. But the benchmark closed down 44.5 points or 0.15% at 29,398.11. The Nifty ended at 9,084.80, tad down from the historic high of 9,087 touched on Tuesday, days after Prime Minister Narendra Modi’s landslide victory in Uttar Pradesh that enhanced chances of more economic reforms.
A higher-than-expected CPI inflation of 3.65% in February and unwinding of monetary stimulus by major central banks also mutes chances of a RBI rate cut in near future.
The Sensex too soared to reach 29,561.93 in early morning trade as the Bombay Stock Exchange opened after a three-day holiday and for the first time since results of the five-state assembly polls were announced on Saturday. But it closed up 496 points or 1.7% at 29,442.63.
After Wall Street closed in the red, Asian markets traded cautiously. The MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1% in early trade.
Nikkei closed down 0.16% while Hang Seng shed 0.15%, Strait Times fell 0.2% and Kospi flat.
In the next three days, investors will be on edges ahead of policy reviews by the Fed, the Bank of England and the Bank of Japan. Europe is also embroiled in political uncertainties ahead of a Dutch election and the impending Brexit.