BENGALURU, June 17 (Reuters) - Indian shares trimmed losses
on Thursday, as investors focused more on the U.S. Federal
Reserve raising the country's economic growth forecast while
noting its projection to hike interest rates sooner than
By 0500 GMT, the blue-chip NSE Nifty 50 index was
down 0.19% at 15,737.90 after falling as much as 0.78%. The
benchmark S&P BSE Sensex traded 0.17% lower at
52,411.71, retreating from its 0.77% fall.
India's benchmark 10-year bond yield rose to
up to 6.06% versus Wednesday's close of 6.05%, while the rupee
slipped 0.64% to 73.79 against the dollar, its weakest
level since early May.
"The market initially reacted to the Fed outcome as it
turned slightly hawkish. I would say that the market should not
get too worried, as of now, as the growth outlook has also been
increased," said Neeraj Dewan, director at Quantum Securities.
The Fed raised the U.S. growth forecast to 7% this year,
while officials moved their first projected rate increases from
2024 into 2023 and opened talks about when to pull back on the
$120 billion in monthly bond purchase.
In Mumbai trading, financials stocks weighed on the Nifty
50, with HDFC Bank Ltd, HDFC Ltd and ICICI
Bank Ltd shedding between 0.6% and 0.9%.
The Nifty Bank Index and the Nifty Private Bank
Index, which have so far fallen over 0.50% this
week, lost 0.47% each.
Adani Group stocks extended their decline for a fourth
straight day, even after its companies earlier this week
rejected a media report that said accounts of three foreign
investor funds that own the Group's stocks were frozen.
Adani Transmission, Adani Green Energy
Adani Total Gas Adani Power fell 5% each to
be locked in lower circuits. Adani Ports and Special Economic
Zone Ltd was among the top drags on the Nifty 50,
(Reporting by Rama Venkat and Chris Thomas in Bengaluru;
editing by Uttaresh.V)