SGX Nifty signals a positive start for markets

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Trends on the Singapore stock exchange indicates that the Nifty could rise 23 points at the opening bell. However, the upside will be capped as investors await U.S. Federal Reserve’s decision on tapering. Overseas, Asian stocks are trading mixed on Wednesday as investors look ahead to the end of the U.S. Federal Reserve’s two-day meeting for clues on tapering. Markets in Japan are closed on Wednesday for a holiday.

A private survey released Wednesday showed growing Chinese services activity in October, with the Caixin/Markit services Purchasing Managers’ Index coming in at 53.8, rising from September’s reading of 53.4.

Wall Street’s main indexes rose on Tuesday to record highs as a strong earnings season continued to lift sentiment for equities.

The Fed at the conclusion of its two-day meeting on Wednesday is reportedly likely to announce it will begin unwinding its $120 billion in monthly bond purchases implemented during the pandemic.

Domestic markets:

Back home, the domestic equity benchmarks ended with small losses on Tuesday. The barometer index, the S&P BSE Sensex, fell 109.40 points or 0.18% to 60,029.06. The Nifty 50 index lost 40.70 points or 0.23% to 17,888.95.

Foreign portfolio investors (FPIs) bought shares worth Rs 244.87 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 6 crore in the Indian equity market on 2 November, provisional data showed.