Banks Drag Sensex, Nifty As China Tensions, Fed Weigh

Indian shares opened lower on Thursday, dragged down by banking and IT stocks, as China tensions remained in focus, while sentiment was subdued after the U.S. Federal Reserve failed to offer further stimulus.

The blue-chip NSE Nifty 50 index fell 0.39% to 11,559.10 and the benchmark S&P BSE Sensex was down 0.45% at 39,127.37 by 0349 GMT. Both indexes have risen 1.2% so far this week.

Indian officials said on Wednesday Indian and Chinese border troops had an exchange of gunfire last week just days before a meeting of their foreign ministers.

Sentiment was also dampened as broader Asian markets fell after the Fed pledged to keep interest rates low for a long time but stopped short of offering further on stimulus for the U.S. economy.

In domestic trading, the Nifty Bank Index fell 1.01%, while the Nifty IT index fell 0.51%. HDFC Bank Ltd and Tata Consultancy Services Ltd were among the top drags on the Nifty 50.

(Reuters)