Indian share prices closed 0.48 percent lower on Wednesday in line with global markets ahead of a monetary policy meeting of the US Federal Reserve, dealers said. They said sentiment was also cautious ahead of the expiry of the local monthly derivative contract on Thursday.
The 30-share Sensex index fell 70.02 points to 14,431.06. Software stocks however recovered as the rupee weakened against the dollar to 41.01 on Wednesday from 40.9. Software firms in India bill many of their clients in dollars and a weaker rupee boosts local currency earnings. "We expect further unwinding of positions as investors expect weak global trends ahead," said Atul Hatwar, dealer with brokerage Crosseas Securities. The US Federal Reserve starts a two-day meeting on Wednesday to review monetary policy.