By Arnab Paul
(Reuters) - Indian shares gave up early gains and were trading lower on Wednesday, with investors largely keeping to the sidelines as they awaited cues from a U.S. Federal Reserve meeting that ends later in the day.
Asian shares inched higher as Sino-U.S. trade war worries receded while U.S. bond yields stood near a seven-year peak ahead of a widely expected rate hike by the Federal Reserve.
Losses in consumer goods stocks such as ITC Ltd and Hindustan Unilever Ltd were offset by gains in finance and healthcare stocks. ITC fell 2.6 percent while Lupin gained 2 percent.
The broader Nifty was down 0.21 percent at 11,044.1 as of 0548 GMT, while the benchmark Sensex was 0.30 percent lower at 36,540.74.
Both the Nifty and Sensex have shed nearly 4 percent each in the last six sessions.
Also Read
Analysts said the current situation in non-banking financial companies makes it difficult to predict short-term market direction, adding that bounces may be short-lived.
"People are uncertain. What happened with IL&FS could open a can of worms. Gains will be temporary as the markets are still in a downtrend," said Sudhakar Pattabiraman, Head of Research Operations, William O'Neil India.
Infrastructure Leasing & Financial Services (IL&FS) revealed a series of delays and defaults on debt obligations and inter-corporate deposits in recent days, triggering a sell-off in stocks of non-banking finance companies.
"There are also global factors such as crude prices, the dollar and the trade war," Pattabiraman added.
Crude oil, up 0.04 percent at $81.9, has gained 22.4 percent this year so far as of its last close while the rupee has weakened more than 13 percent against the dollar in the same period, adding to the list of worries for investors in a country that is heavily dependent on imports to meet its energy needs.
Private-sector lender Yes Bank Ltd rose 3.4 percent after the bank sought extension in CEO Rana Kapoor's term.
Indiabulls Housing Finance Ltd rose as much as 9.5 percent, snapping a three-session losing streak which saw the company lose 20 percent of its market value.
Shares of automotive solutions supplier Minda Industries Ltd rose 8.40 percent after approving to set up manufacturing plant for 2-wheeler alloy wheels in Maharashtra.
Titan Company Ltd rose as much as 2.9 percent after Morgan Stanley raised its price target for the stock.
(Reporting By Arnab Paul in Bengaluru; Editing by Vyas Mohan)
Disclaimer: No Business Standard Journalist was involved in creation of this content