Sensex, Nifty To Open On Cautious Note After Fed Rate Decision

Indian shares are likely to open lower on Thursday as investors react to mixed catalysts.

The U.S. Federal Reserve signaled potential rate cuts but warned of high inflation and uncertain path forward.

Closer home, Goods and Services Tax (GST) collections soared to a new peak of Rs 2.10 lakh crore in April, marking a 12.4 percent increase year-on-year, the Finance Ministry said in a statement.

Separately, according to data released by the Ministry of Commerce and Industry, growth in India's core sector output slowed to 5.2 percent year-on-year in March from 7.1 percent in February but was higher than March 2023 at 4.2 percent.

The International Monetary Fund (IMF) has revised its growth forecast for India upward from its January projection of 6.5 percent to 6.8 percent.

Asian markets were mostly lower this morning and Treasuries were little changed after climbing Wednesday while gold edged higher as the Fed struck a less hawkish tone than expected.

Oil recovered some ground after slumping to a seven-week low Wednesday on bearish inventory data.

U.S. stocks fluctuated before closing slightly higher overnight after the Fed held rates steady and cited lack of progress on inflation to cut interest rates from a two-decade high.

The U.S. central bank also announced that it would shrink its balance sheet at a slower pace to ease strains in money markets.

On the data front, private payrolls increased at a faster than expected pace in April, while factory activity contracted in the month on declining demand, separate reports revealed.

While the Dow inched up 0.2 percent, the tech-heavy Nasdaq Composite and the S&P 500 both dipped around 0.3 percent.

Most European markets were closed on Wednesday for May Day. The U.K.'s FTSE 100 dropped 0.3 percent.

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