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Nifty likely to open flat; investors await FOMC minutes

The US Federal Reserve is expected to release the minutes of the latest FOMC meeting at 11:30 pm tonight. Investors hope that the minutes will shed further light on the Federal Reserve’s exit strategy from its asset-purchasing programme and ultra-low benchmark interest rate.

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The Nifty is likely to open flat with a positive bias, with the SGX Nifty trading at 7888, up 5 points. Investors on Wednesday preferred profit-taking after six-day gains.

The BSE Sensex slipped 106.38 points to 26314.29 and the 50-share NSE Nifty fell 22.20 points to 7875.30 after rallying more than 4 percent in past six consecutive sessions. However, the broader markets outperformed benchmarks with the BSE Midcap and Smallcap gaining 0.06 percent and 0.93 percent, respectively.

Globally, the US Federal Reserve is expected to release the minutes of the latest FOMC meeting at 11:30 pm tonight. Investors hope that the minutes will shed further light on the Federal Reserve’s exit strategy from its asset-purchasing programme and ultra-low benchmark interest rate. Some hawkish Fed members, like Philadelphia Fed president Charles Plosser, have already started beating the drums of an early interest rate increase.

The focus of Wall Street though is on the annual symposium on monetary policy in Jackson Hole. Fed chair Janet Yellen is scheduled to speak on labour markets and could offer a defense of her views that there is considerable slack in labour markets. ECB president Mario Draghi is also one of the key speakers at the event.

More to follow..

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