BENGALURU, June 16 (Reuters) - Indian shares declined
further on Wednesday, weighed down by heavyweight Reliance
Industries and financial stocks, with investors eyeing the U.S.
Federal Reserve's policy statement due later in the day.
The blue-chip NSE Nifty 50 index fell 0.43% to
15,804.20 and the benchmark S&P BSE Sensex was down
0.29% to 52,620.97 by 0457 GMT. Both the indexes closed at a
record high on Tuesday.
"The market might be reluctant to push higher ahead of the
Fed meeting. The possibility of further upsides depends heavily
on the continuation of liquidity. If the Fed were to tighten the
screws on interest rates, there is a possibility that markets
may not see that as favourable," said Anand James, chief market
strategist at Geojit Financial Services.
If the Fed signals an idea of interest-rate hikes, the
Indian market could expect the Reserve Bank of India to follow
suit due to the country's higher inflation reading. This may not
be positive, especially as more states ease curbs, he said.
In Mumbai trading, Reliance Industries Ltd and
HDFC Ltd were the top drags on the Nifty 50, shedding
0.9% and 0.6%, respectively. Shares of Reliance have gained in
the last five trading sessions out of eight.
The Nifty Bank Index and the Nifty Private Bank
Index have so far risen more than 0.30% this week.
Tata Steel Ltd and JSW Steel Ltd were
down 2.7% and 2.4%, respectively, driving the Nifty Metal Index
China has stepped up its campaign to rein in raw materials
prices by expanding its oversight of commodities trading by
state firms to overseas markets, Bloomberg News reported on
In the broader Asian market, shares were subdued ahead of
the Fed's meeting.
(Reporting by Rama Venkat in Bengaluru; editing by Uttaresh.V)