Indian shares seen opening flat after Fed signals more hikes; NSE IPO in focus

Indian equities are expected to open little changed on Thursday, according to Business Recorder, after the US Federal Reserve lifted its benchmark rate and signalled further increases. High crude prices and a crowded queue of share sales, headlined by the NSE issue, may also weigh on sentiment. GIFT Nifty futures pointed to a nearly flat start for the Nifty 50, which ended Wednesday at 23,217.60.

The Federal Reserve lifted borrowing costs by 25 basis points with every member in agreement, its first move up in over three years. Its quarterly projections showed 16 of 18 officials expect at least one more move of that size before the end of the year. The report noted that higher US rates tend to make emerging markets like India less attractive to foreign money, while IT firms earning much of their revenue in America could face pressure.

Brent fell to roughly $106 a barrel after Saudi Arabia reportedly made more cargoes available through Oman, calming some supply fears. Limits tied to the Strait of Hormuz and lasting geopolitical risks still cloud the oil outlook. The NSE IPO opens Thursday, and anchor investors had already taken shares valued at 67.46 billion rupees ($703.07 million) at 1,785 rupees apiece, the top of the price band. Arun Kejriwal of Kejriwal Research and Investment Services warned that much liquidity may be absorbed by new issues.