Indian markets may be under pressure on Thursday following weakness in global peers after the US Federal Reserve's cautioned that the path to economic recovery remains uncertain and pace slow.

SGX Nifty futures were down in 0.64% in early deals, suggesting a negative opening of Indian benchmark indices.

On Wednesday, the BSE Sensex ended at 39,302.85, up 258.50 points or 0.66%. The Nifty was at 11,604.55, up 82.75 points or 0.72%.

Asian shares were lower on Thursday as concerns about the strength of the recovery from the covid-19 pandemic remained even after the US Federal Reserve pledged to hold interest rates near zero until at least 2023.

The Fed said it would keep interest rates near zero until inflation is on track to "moderately exceed" the central bank's 2% inflation target "for some time," with the aim of offsetting years of weak inflation and allowing the economy to add jobs for as long as possible. The median forecast of Fed policy makers is for rates to stay near zero through 2023.

The economic recovery is ongoing but the pace is expected to slow, requiring continued support from the Fed and from further government spending, Powell said. US lawmakers have been at an impasse for months over a new stimulus package. US data showed that at least one key driver of the US economy was already slowing, with retail sales pulling back in August as extended unemployment benefits were cut for millions of Americans.

Back home, cash-strapped Indian carriers have asked the government to set up an interest-free line of credit of at least $1.5 billion for the aviation sector, civil aviation minister Hardeep Singh Puri said on Wednesday.

He said the airlines have also sought a six-month deferment of their loan repayments by banks and financial institutions, while not treating it as bad loans. Puri was responding to queries from Trinamool Congress member of Parliament Derek O’Brien in the Rajya Sabha.

State-run Hindustan Petroleum Corp. Ltd will invest over 60,000 crore over the next five years to build infrastructure, chairman Mukesh K. Surana said at the company’s 68th annual general meeting on Wednesday.

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Longer-term US Treasury yields and gold prices edged higher after the Fed.

The Bank of Japan is set to keep monetary policy steady on Thursday and stress its readiness to work closely with the new government led by Yoshihide Suga, who has vowed to do whatever it takes to ease the economic blow from the coronavirus.