Positive start likely despite mixed cues from Asian peers

Today, the start to the F&O series expiry session is likely to be in the green, despite the Asian markets trading on a cautious note. However, as the day progresses, volatility is expected to kick in. The SGX Nifty is trading higher by 35 points at 11,087, indicating a positive start to the day.  
  
Asian stocks are trading cautiously in early trading on Thursday as market participants evaluated comment from the Federal Reserve that the US economy is strong enough to warrant another interest rate hike by the end of this year. Equity benchmark in Hong Kong has risen 0.35 per cent, while China’s Shanghai Composite has dipped 0.29 per cent and Japan’s Nikkei 225 has shed 0.13 per cent.  
  
Back home, Indian benchmark indices ended a highly volatile session with marginal losses on Wednesday. The equity benchmark indices opened the session with a gap-up, however, it faced selling pressure at the higher levels and the indices corrected from intra-day high levels to close at 11,054 (Nifty) and 36,542 ( Sensex) . However, the broader markets witnessed a positive close, with the Nifty Mid-cap and Small-cap closing with gains of 0.31 per cent and 0.08 per cent, respectively. The sectoral indices witnessed mixed trend with Nifty PSU Bank, Nifty IT and Nifty FMCG emerging top losers, while Nifty Realty and Nifty Metal ending as top gainers. 
  
On the Wall Street, the major stock indices reversed course and finished lower in Wednesday's session when the investors had awaited an expected interest rate hike by the Federal Reserve. As expected, the Fed increased its target range of the Fed fund rates by 25 basis points to a range of 2.00 per cent - 2.25 per cent in an unanimous vote. Fed Chairman Jerome Powell told reporters in his press conference that dropping “accommodative” from the statement does not signal a shift in the outlook for rates. While on the economic front, data showed a rise in new home sales for August. The Dow Jones Industrial Average lost 107 points to close at 26,385; the S&P 500 Index dropped 10 points to end at 2,996, and the Nasdaq Composite Index edged down 17 points to finish at 7,990.   
  
The European markets ended Wednesday’s session in the positive territory. The DAX of Germany climbed 0.09 per cent; the CAC 40 of France surged 0.61 per cent and UK’s FTSE 100 added 0.05 per cent.