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Global cues mixed, but positive Nifty opening seen

Globally, Asian markets traded lower in early trade as investors eye increased uncertainty heading into the US Federal Reserve’s meeting next week.

The Indian equity market is expected to open in the green on a positive global backdrop. The SGX Nifty, an indicator of the market opening, was trading at 7842.00, up 21.50 points at 7:40.

Back home, a late rally helped Dalal Street with the Nifty recovering over 150 points from the day’s low to end with marginal losses.

Globally, Asian markets traded lower in early trade as investors eye increased uncertainty heading into the US Federal Reserve’s meeting next week.

The Fed is widely expected to raise its near-zero interest rate as early as next week amid improving economic fundamentals in the US. But an abrupt devaluation of the yuan by Chinese authorities in August and renewed turmoil in global markets has had some market watchers paring back their forecasts.

Overnight, Wall Street ended higher, led by recovery in oil prices and major stocks such as Apple. The Nasdaq Composite led gains with a 0.8 percent rise. The Dow Jones  and the S&P 500 closed up 0.5 percent each.

European equities finished lower  after investor sentiment was left dented by downbeat data from Japan and China. FTSE closed down 1.2 percent after the Bank of England kept interest rates on hold at 0.5 percent, policymakers decided it was as it was too early to tell whether the turmoil in China would impact the UK.

The US dollar fell after economic data in the US sent contrary signals on whether the Federal Reserve would raise interest rates next week.

Crude prices gained overnight on strong US demand for gasoline , but news of increased US inventories of crude keeps prices under check. Brent Crude was trading above USD 48 per barrel.

And precious metal gold was trading near four-week lows.

Back home, the index of industrial production (IIP) data for the month of July is expected today. A CNBC-TV18 poll sees the data coming in slightly lower at 3.41 percent versus 3.8 percent month-on-month (MoM) due to weakness in core sector data.

Market regulator Sebi has sought more disclosures from India Inc. It wants companies to reveal key material events such as acquisitions, amalgamations and even family agreements.

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