In a highly volatile trade, Indian stock indices hovered substantially lower from the previous closing, largely due to sustained selling by foreign portfolio investors.
Investors across financial markets, including in India, will look for fresh cues from the outcomes of the upcoming US monetary policy review meeting later this week, particularly the extent of interest rate cut, if any.
American central bank US Federal Reserve will most likely cut key interest rates twice this year -- once this month and again in December, anticipates S&P Global Market Intelligence.
In a volatile trade, Indian stock indices - Sensex and Nifty - closed Tuesday's session largely on a steady note. The indices started the day flat and later oscillated between red and green, but closed with marginal gains.
The majority of the Fed members in the latest monetary policy meeting indicated of a policy rate cut in the September meeting, mentioned the Fed minutes released on Wednesday.
The Federal Reserve, in its latest meeting, decided to keep the federal funds rate unchanged at 5.25 per cent to 5.5 per cent for the eighth time. In its statement, the Fed observed that job gains in the U.S. economy have moderated, while the unemployment rate has increased slightly but rema
The U.S. Fed in its latest meeting noted a lack of significant progress towards reaching the 2 per cent inflation target, although it added that there had been modest improvements in recent months, highlighted the Fed policy minutes released on Wednesday.
Indian stock indices were largely steady at the opening bell Tuesday, with a downward slant. Indices Sensex and Nifty were a shy above their yesterday's closing at the time of filing this report.
Indian stock market indices traded in the red at Tuesday's opening bell over reported concerns of overheating in the small and midcaps space coupled with profit booking by investors.
Going ahead into this week, investors are likely to tread carefully as the U.S. Federal Reserve's meeting scheduled Tuesday-Wednesday, its outcome due likely this midnight, will be closely monitored.