Indian shares fall as Fed signals more rate hikes

Article content

BENGALURU — Indian shares fell on Thursday, in line with Asian peers, while the rupee hit a record low after the U.S. Federal Reserve raised interest rates and indicated more hikes than markets had expected.

The NSE Nifty 50 index fell 0.53% at 17,624, while the S&P BSE Sensex slipped 0.51% to 59,150 as of 0346 GMT.

Article content

The Indian rupee hit a record low of 80.45 against the U.S. dollar.

The Fed increased rates by 75 basis points on Wednesday – the third such rise in a row – and signaled that it would continue to raise borrowing costs to fight inflation.

India’s central bank is due to meet next week to decide on its own path for monetary policy.

Shares of budget carrier SpiceJet Ltd fell 4% after India’s air safety watchdog on Wednesday said it was extending a restriction on flight departures until Oct. 29. (Reporting by Nallur Sethuraman in Bengaluru; editing by Savio D’Souza and Neha Arora)