Indian shares are expected to open little changed on Thursday after the US Federal Reserve held interest rates steady, as expected, while elevated oil prices kept investors cautious.
GIFT Nifty futures were at 22,708 as of 7:35 a.m. IST, indicating a muted start for the benchmark Nifty 50, which closed at 22,698.85 on Wednesday.
The Federal Reserve kept interest rates unchanged on Wednesday, opting to delay any changes to borrowing costs until after next week's US midterm elections while it awaits further data on inflation, which it said "remains elevated."
Higher interest rates increase the appeal of Treasuries and the dollar, making emerging market equities, including India, less attractive for foreign portfolio investors.
FPIs bought Indian shares worth 8.72 billion rupees ($91.58 million) on Wednesday in a second consecutive session of buying, provisional data showed. They have offloaded $3.74 billion worth of shares so far in October.