Markets keeping it light today with all eyes on the FOMC meeting

Markets are keeping it light today given the fact that later in the day we have the FOMC decision. The Nifty and the Bank Nifty are trading flat to slightly higher.

Overnight the cues from the U.S. markets were positive while indices closed higher for the second straight session. The S&P500 has managed to end above it’s 200 day moving average which is an important signal. Bond yields jumped higher on the back of strong existing home sales data in the month of February. Asian markets & our markets responded well early in the session but have since come off the day’s highest point.

Sectors like PSU banks and autos are doing well. Broader markets are also in fine shape with Smallcap Index up over 0.8%. Insurance stocks are doing well on the back of a CLSA note which says that all negatives for the sector are in the price.