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 U.S. Federal Reserve dented broader risk appetite.

In a challenge to the stock market’s recent optimism, the Fed predicted the U.S. economy would shrink 6.5% in 2020 and unemployment would still be at 9.3% 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% to 10,060 by 0346 GMT, while the benchmark S&P BSE Sensex was down 0.55% at 34,058.55.

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

Meanwhile, shares of Bharti Airtel and Vodafone Idea rose 0.4% and 1.38%, respectively after CNBC-TV18 reported that the country’s Supreme Court will take up the case over telecom dues on Thursday. (bit.ly/30x9Xfs)