Indian Shares Flat as Fed Signals Rate Hike; IT Stocks Weigh

Indian shares ended little changed Thursday after the Federal Reserve held interest rates steady but signaled one more hike this year, a move that pushed technology stocks lower. The Nifty 50 closed flat, while the Sensex edged up 0.1%. IT stocks fell about 1% as a group, dragging the broader index.

The Fed left its benchmark rate unchanged at 5.25%-5.50%. Its dot plot showed one quarter-point increase in 2025, up from zero in the March projections. The hawkish tilt weighed on rate-sensitive sectors, especially technology, which relies on U.S. demand for its services. Oil and gas stocks offered support after crude prices slipped, cushioning the market's decline.

Trading volumes were below average, reflecting caution ahead of domestic inflation data due next week. The lack of conviction kept the market range-bound despite the rate decision. For a broader perspective on how Fed policy shapes emerging markets, see AlphaScala's stock market analysis.

The Reserve Bank of India's monetary policy committee meets in early next month. Traders will watch for any shift in the RBI's stance after the Fed's updated rate path.