Indian Shares Stay Flat as Investors Await Fed Decision

Indian benchmark indices traded largely flat on Tuesday after ending a five-day losing streak in the previous session. Investors remained cautious ahead of the U.S. Federal Reserve’s interest rate decision, while easing tensions in the Middle East provided some relief to global markets. The Nifty 50 and BSE Sensex both edged slightly lower in early trade.

Hindustan Unilever shares fell 3.7% after reporting weaker quarterly profits due to rising costs, weighing on the consumer sector. Meanwhile, the IT sector outperformed, gaining 3.6% as analysts viewed Indian technology firms as less exposed to concerns surrounding the rising costs of artificial intelligence investments. Most other major sectors, however, traded in negative territory.

Market participants are closely watching the Federal Reserve’s outlook on inflation and interest rates, particularly in light of recent geopolitical developments. Falling crude oil prices and strength in energy and metal stocks continued to support overall market resilience, although shares of Coal India and Bharat Electronics declined after disappointing earnings and margin concerns.

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