Indian Shares End Choppy Session Little Changed

(RTTNews) - Indian shares fluctuated before ending on a flat note on Tuesday as elevated oil prices fueled inflation and rate hike concerns ahead of this week's Federal Reserve interest-rate decision.

Markets currently see a 10 percent chance of a rate hike on Wednesday, with a quarter point rate hike widely expected at the Fed's December meeting.

The accompanying statement will be in the intense spotlight as investors look for any hints policymakers give on their outlook.

Oil prices remained elevated despite pulling back from recent highs amid hopes for regional diplomacy in the Middle East.

Tensions in the Gulf region continued, with a Houthi official claiming that Egypt's authorization of military support for Saudi Arabia amounted to a "declaration of war" against Yemen.

Media reports suggested that Lebanese armed group Hezbollah is preparing for a possible resumption of hostilities with Israel after receiving financial support from Iran.

CNN reported on Monday, citing two U.S. officials that U.S. forces in West Asia are ready to launch new, potentially, major, military operation against Iran "within 96 hours of receiving" an order from President Trump and that the scope of operation could go beyond limited strikes on Iranian radars, missile launchers and other military assets that can be quickly rebuilt.

The benchmark 30-share BSE Sensex slipped 8 points to close at 73,598.67, with banks and financials leading losses amid mixed cues from global markets.

The NSE Nifty index ended 3.45 points lower at 22,749.75 while the BSE mid-cap and small-cap indexes rallied 1.1 percent and 2 percent, respectively.

The market breadth was strong on the BSE, with 2,938 shares rising while 1,379 shares fell and 230 shares closed unchanged.

Among the prominent decliners, Bajaj Finance, ICICI Bank, HDFC Bank, Asian Paints, TCS, Axis Bank and SBI fell between 0.8 percent and 1.6 percent.

Among the top gainers, Eternal, Power Grid Corp, Maruti Suzuki India, Trent and Bharti Airtel rallied 2-3 percent.