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Nifty may shrug off Fed news and open mildly higher

Asian shares outside Japan mostly rebounded early Friday, recovering from early losses after the Federal Reserve cited concerns about global economic growth in its decision to hold off on its first rate hike in nearly a decade.

The India equity market may shrug off the negative news from Fed and open mildly higher. The market indicator SGX Nifty too is trading in the green with 23 points up at around 7963 around 7.30 am in the morning.

The market was closed for trading on Thursday. However, the markets had rallied on Wednesday and closed higher.

Asian shares outside Japan mostly rebounded early Friday, recovering from early losses after the Federal Reserve cited concerns about global economic growth in its decision to hold off on its first rate hike in nearly a decade.

There was no move by the US Federal Reserve on interest rates as Fed Chair Janet Yellen said global conditions are having an impact on the FOMC’s decision making process. The US markets closed mixed on global growth concerns and amid uncertainty on when the Fed would actually raise rates.

The treasury yields extended losses, with the US 10-year yield at 2.19 percent.

From other asset class, the US dollar slide as the Fed said it wanted more time to evaluate the impact of developments abroad on the US economy and crude price reversed some of their gains

According to OPEC forecast, oil prices will grow by no more than USD 5 per barrel a year to reach USD 80/bbl mark by 2020.

Gold price surged to USD 1130 an ounce as dollar slumps with the dollar index at a three-week low.
From other news back home, there is no threat of P-notes being banned in India. The Delhi High Court has dismissed a public interest litigation which had sought a ban on the participatory notes.

The High Court has ruled that Participatory Notes are in no way illegal and are regulated under the rules set down by the market regulator.

Meanwhile the Finance Minister has said that the government will continue to take executive actions in order to address some of the unresolved issues, especially, on the taxation front.

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