Indian Shares Set to Open Lower on U.S. Rate Concerns and Foreign Selling

Indian shares are expected to open lower today, following a decline in Asian markets due to concerns over U.S. interest rates. The GIFT Nifty was down 0.20% at 19,574 points on the NSE International Exchange. The cautious sentiment was also influenced by persistent foreign selling in the Indian equity market.

Last week, the Nifty 50 extended losses for the second consecutive week. This decline coincided with the re-emergence of foreign portfolio investors (FPI) selling. In September, FPIs offloaded shares worth 147.68 billion rupees, ending a six-month buying streak. They have continued to be net sellers in the last nine sessions, selling shares worth 16.86 billion rupees on Friday.

On Wall Street, equities remained subdued after hawkish comments from U.S. Federal Reserve Chair Jerome Powell and Vice Chair for Supervision Michael Barr. These remarks reignited concerns about a prolonged high interest rate regime.

In company news, Cipla announced the divestment of a 51% stake in Saba Investment, UAE, for $6 million. Vedanta revealed plans to split into six businesses to improve the group’s financial performance. Hero MotoCorp, a leading two-wheeler maker, will increase prices of select motorcycles and scooters by 1%. Rail Vikas Nigam secured an order worth 10.98 billion rupees for infrastructure development in Himachal Pradesh.

While the Indian equity market was closed on Monday due to a public holiday, investors will closely monitor the market today for any further developments.