(Updates at 9:18 a.m. IST)

BENGALURU, Sept 18 (Reuters) - Indian shares were flat

at the open on Wednesday and are expected to tread water through

the session ahead of the U.S. Federal Reserve's rate decision

and commentary.

The Nifty 50 index was down 0.07% at 25,396.2

points, while the S&P BSE Sensex shed 0.1% at

82,997.04, as of 9:18 a.m. IST.

Other Asian markets were also muted.

While the Fed is widely expected to lower rates, the size of

the cut, whether 25 basis points or 50 bps, was still not clear.

The odds of a 50-bps cut have climbed to 65% from 34%

last week.

While a bigger rate cut boosts the likelihood of foreign

investors shifting funds to emerging markets such as India in

search of higher returns, it has also prompted fears that the

Fed may have delayed the start of its easing cycle a little too

long, at the cost of economic growth.

The Fed's reason for its decision and its commentary on

future policy will influence the near-term trajectory of Indian

equities in terms of foreign inflows and the outlook for

U.S.-dependent sectors such as IT and pharma, three analysts

said.

Eight of the 13 major sectors logged gains. The small-

and mid-caps were little changed.