Sensex, Nifty Seen Tad Lower As Investors Await Fed Decision

(RTTNews) - Indian shares are seen opening flat to slightly lower on Wednesday, as investors react to mixed global cues and a sharp rise in oil prices overnight.

Oil companies could be in focus after the government slashed the windfall tax or the special additional excise duty on crude petroleum exports.

On the earnings front, Tech Mahindra reported a 4 percent year-on-year fall in consolidated net profit for the September quarter, while Adani Ports & SEZ reported a 65 percent jump in its net profit for the July-September quarter and UPL posted a 28.4 percent rise in quarterly profit.

Benchmark indexes Sensex and Nifty jumped around 0.6 percent and 0.7 percent, respectively on Tuesday, with positive global cues, solid corporate earnings and upbeat manufacturing data boosting sentiment. The rupee rose by 10 paise to close at 82.71 against the greenback.

Asian markets traded mixed this morning, the dollar dipped and U.S. Treasury yields were largely steady as investors await the all-important Fed decision later in the day.

The Fed is widely expected to raise interest rates by another 75 basis points, but investors are pinning hopes that the central bank will signal plans to slow the pace of rate hikes at upcoming meetings. Currently, traders are split on the size of the hike in December.

Oil extended gains after climbing about 2 percent in the previous session as industry data showed a surprise drop in U.S. crude stockpiles.

U.S. stocks gave up earlier gains to end lower overnight as investors pondered over mixed economic readings ahead of the Fed's interest-rate decision.

A report on job openings highlighted labor market strength and construction spending unexpectedly rebounded in September, while U.S. manufacturing neared stagnation in October, separate reports showed.

The Dow slipped 0.2 percent, the S&P 500 shed 0.4 percent and the tech-heavy Nasdaq Composite declined 0.9 percent.

European stocks closed higher on Tuesday as bond yields dipped ahead of the Fed and BoE rate decisions.

The pan European Stoxx 600 gained 0.6 percent. The German DAX rose 0.6 percent, France's CAC 40 index surged 1 percent and the U.K.'s FTSE 100 climbed 1.3 percent.