Indian equities tracking mixed Asian markets started Tuesday's session .At the start, the 30-share Sensex opened mildly higher by 0.02 per cent or 18.67 points at 83,007.45, while the Nifty was down 0.04 per cent or 9.85 points at 25,373.9. Meanwhile, broader markets also traded in the red with mild weakness.

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Sectorally, there was mixed sentiment, with Auto, Realty and PSU Banking stocks weighing on the markets today, while FMCG and oil & gas stocks capped the losses.

Prashanth Tapse, Senior VP (Research), Mehta Equities said, “Former New York Federal Reserve President William Dudley has called for a half-point rate cut, heightening expectations of an aggressive move by the Fed this Wednesday."  Nifty is likely to trade within a range of 25,000-26,000, with 26,000 acting as a key resistance, added Tapse based on technicals.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services held that the markets in the previous trading session remained rangebound as the focus is primarily on the Fed rate action on Wednesday. 

Rate cuts are positive for markets and higher rate cuts are more positive.

But if the incoming data signals a sharply slowing economy and the Fed cuts by 50bp the market is unlikely to treat it as positive. It is possible that the market may take it as a signal of the US economy tipping into recession and, therefore, the response need not be positive, added Vijaykumar.

Asian markets

Asian markets traded mixed with Hong Kong's Hang Seng up over 1 per cent, while the Japan's Nikkei was down over 2 per cent.

Oil prices 

Oil prices extended their previous day's gains amid uncertainty over US stock output and expected slide in stockpiles.