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Nifty likely to open in green; Asia opens mixed

Asian stocks opened mixed as investors reacted to a dovish statement from the US Federal Reserve. Dollar had its worst day versus the yen since December 2014. The Kospi opened up to a near six-month high led by brokerages and IT-related shares.

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The Nifty is likely to open in the green with indicator SGX Nifty at 8773, up 80 points. At Wednesday’s closing, the 30-share BSE Sensex fell 114.26 points to 28622.12 and the 50-share NSE Nifty declined 37.40 points to 8685.90 on profit booking after rising a percent in previous session.

Asian stocks opened mixed as investors reacted to a dovish statement from the US Federal Reserve. Dollar had its worst day versus the yen since December 2014. The Kospi opened up to a near six-month high led by brokerages and IT-related shares.

The FOMC last night removed the word ‘patient’ from the text as expected, opening the door for rate increases, bolstering the bullish tone as it lowered its growth and inflation forecast and said hikes won’t start until the labour market has healed further and the 2 percent inflation target looks achievable. The Fed also noted that the change in rate guidance did not mean the FOMC had decided on the timing of a hike. Jannet Yellen added that the timing of initial increase in target range will be data dependant.

Stocks in the US closed sharply higher as investors cheered the Fed’s statement. Dow Jones recovered a 150-point loss to close above 18,000. The CBOE VIX, fell more than 10 percent to trade below 14.

In Europe, equities closed mixed as investors digested the annual UK Budget statement in which finance minister George Osborne upped his economic growth forecast for 2016 to 2.3 percent but revised down growth figures for last year.

In the currency space, the US dollar dropped, after investors priced in a later start and a slower pace for future US rate rises. The euro jumped 3 percent against the dollar. The US 10-year treasury dipped below 2 percent. 

Oil and gold prices gained after the Fed removed ‘patient’ from its statement.

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