In a challenge to the stock market’s recent optimism, the Fed predicted the US economy would shrink 6.5 per cent in 2020 and unemployment would still be at 9.3 per cent at year’s end.

The Nifty banking index and the financial index fell 0.67 per cent and 1 per cent, respectively. (Photo: Reuters)

Indian shares edged down on Thursday, dragged down by financials, as a recent rally on the back of easing domestic lockdowns paused after a sober economic outlook from the US Federal Reserve dented broader risk appetite.

In a challenge to the stock market’s recent optimism, the Fed predicted the US economy would shrink 6.5 per cent in 2020 and unemployment would still be at 9.3 per cent at year’s end.

Asian shares eased on Thursday while bonds rallied after the Fed’s outlook.

The NSE Nifty 50 index fell 0.56 per cent to 10,060 by 0346 GMT, while the benchmark S&P BSE Sensex was down 0.55 per cent at 34,058.55.

The Nifty banking index and the financial index fell 0.67 per cent and 1 per cent, respectively.

Meanwhile, shares of Bharti Airtel and Vodafone Idea rose 0.4 per cent and 1.38 per cent, respectively after CNBC-TV18 reported that the country’s Supreme Court will take up the case over telecom dues on Thursday.

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