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Nifty likely to open in green; eyes on Fed meet

The Fed’s policy committee will convene for its monthly two-day policy meeting today and a statement will be released on Wednesday night.

Nifty likely to open in green; eyes on Fed meet

The Indian equity market is likely to open in the green, with the SGX Nifty up 52 points around 8718.00 at 7:40 am on Tuesday. Globally, too markets ended higher on Monday.

However, back home the 30-share BSE Sensex fell 65.59 points to 28437.71 and the 50-share NSE Nifty declined 14.60 points to 8633.15. The BSE Midcap and Smallcap indices were down 0.3 percent and 0.9 percent, respectively as nearly two shares declined for every share rising on the Bombay Stock Exchange.

Markets in the US closed more than 1 percent higher as investors cheered a pause in the dollar rally and eyed renewed weakness in oil prices ahead of Wednesday’s key Fed meeting.

The Fed’s policy committee will convene for its monthly two-day policy meeting today and a statement will be released on Wednesday night.  Markets will be watching whether the central bank will eliminate the “patient” promise in its post-meeting statement, paving the way for an interest rate hike this year.

On the data front, manufacturing in the New York area dipped sharply in March. The empire state manufacturing index dropped to 6.90 from 7.78 in February. The Industrial production in the US struggled to gain a meager 0.1 percent in February according to data from the Federal Reserve. Also the National Association Of Home Builders Housing-Market Index dropped 2 points to 53 in March.

In Europe, equities finished higher as investor sentiment continued to be positive on the back of the extra liquidity provided by the European Central Bank (ECB) in the region.

From the currency space, the dollar fell across the board, as investors worry that the greenback’s rapid rise could prompt the Federal Reserve to be a little more cautious about raising interest rates this year. The dollar is up 24 percent against a basket of currencies since May and it could become a key issue at this week’s fed monetary policy meeting

In commodities, NYMEX crude is at a six-year low on signs of higher output in the US and Libya and a possible nuclear deal that could end sanctions for Iran, allowing more of its oil into the market.

From precious metals space – gold prices continue to trade near 3 month lows of USD 1150 an ounce    

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