The key domestic benchmarks are likely to open on a
subdued note tracking a mixed trend in Asian stocks as plunging oil prices
signaled concerns over global growth while caution ahead of the outcome of the
US Federal Reserve’s two-day meet today may keep most investors on the
sidelines. The Fed may assess whether to retain its pledge to keep interest
rates at low levels for a “considerable time”. A decision to drop that
commitment may signals higher borrowing costs in the near-term. A global stock
market rout has raised concerns over outflows from emerging markets such as
India. China’s Shanghai Composite rose on speculation of further monetary easing
that led to a surge in financial shares. Hang Seng fell while Japan’s Nikkei 225
rose even as a stronger yen dimmed the appeal of exporter stocks. Back home,
growth concerns have risen as the trade deficit widened to a 18-month high,
pushing the rupee to a 13-month low yesterday.
