Indian equities continued to trade in a tight range as investors awaited the decision of two-day Federal Reserve meeting due tonight. It is the first meeting of the FOMC after US elections.
The 30-share BSE Sensex was down 21.22 points at 26676.60 and the 50-share NSE Nifty declined 12.90 points to 8208.90.
Eswar Prasad, Professor Of Economics at Cornell University believes that rate hike by US Federal Reserve is very much on the cards because inflationary pressures are beginning to creep up in the US economy. Wage growth too has picked up with a strong performance of the labour market, says Prasad.
With the new Donald Trump administration taking office in January, and uncertain about the policies they will adopt, the overall picture is a bit clouded, says Prasad.
Wholesale price index inflation in November stood at 3.15 percent against 3.39 percent in previous month but it was higher compared to CNBC-TV18 poll of 2.8 percent.
