Sensex Edges Lower Ahead Of Fed Meet Outcome; Reliance Gains

Indian shares edged lower on Wednesday tracking tepid Asian markets ahead of the outcome of the U.S. Federal Reserve meeting, while index heavyweight Reliance Industries gained after its telecom unit reported strong April subscriber additions. State-run lenders swung between gains and losses amid worries they would have to raise provisioning levels after the Reserve Bank of India on Tuesday identified 12 of the largest loan defaulters and said it will direct lenders to begin insolvency proceedings around them.

Analysts said the outcome from the Fed meeting later on Wednesday would set the near-term trend. Investors expect a 25 basis points interest rate hike, and more clarity on the rate path ahead as well as on plans to shrink the mammoth bond portfolio.

"The markets are in an uptrend with not too many signs of weakness, but caution remains ahead of the Fed policy", Anupam Singhi, chief operating officer at William O'Neil India, said.

The broader NSE Nifty was flat at 9,606.45 as of 1:48 pm, while the benchmark BSE Sensex was 0.09 percent higher at 31,132.33.

The Nifty Bank index fell as much as 0.33 percent following the RBI statement on Tuesday, while the Nifty PSU Bank index was up 0.75 percent.

Kotak Mahindra Bank lost 0.54 percent, while State Bank of India gained 0.40 percent.

Reliance Industries rose as much as 3 percent after industry data showed its telecom unit, Reliance Jio Infocomm, had added 3.9 million subscribers in April, the most among telecom companies.