Markets closed on account of Ganesh Chaturthi

Indian equity, forex, money and commodity markets will remain closed today on account of Ganesh Chaturthi.

Investors will keenly watch the outcome of two-day policy meet of US Federal Reserve which will conclude tonight.

On Wednesday, benchmark share indices closed higher, amid upbeat global cues, helped by a rebound in financials ahead of the two-day US FOMC meet which begins later today.

The barometer BSE Sensex closed at 25,964 levels, higher by 258 points or 1% while the CNX Nifty closed at 7,899 levels, higher 70 points or 0.9%.

GLOBAL MARKETS

Asian stocks hit a three-week high on Thursday after a jump in oil prices lifted Wall Street, with many investors taking last-minute positions ahead of a crucial US Federal Reserve policy announcement.
 
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.4%, hitting its highest level in three weeks while Japan's Nikkei average rose 1.4%.

Oil prices jumped on Wednesday, after the largest US crude drawdown in seven months at the key US delivery point eased worries about over supply, helping to boost battered energy stocks.

That in turn supported Wall Street shares, with S&P 500 index rising 0.9% to 1,995.31, its highest close in almost a month, having pared just about a half of its fall from July to late August.

US inflation data, unveiled a day before the Fed's long-awaited policy decision later in the day, showed consumer prices unexpectedly fell in August.

KEY ANNOUNCEMENTS

The Reserve Bank of India said on Wednesday it has selected 10 financial institutions to set up separate small banks to lend to small businesses and farmers, who typically struggle to get funding from traditional lenders.

Private-equity backed Ujjivan Financial Services Pvt Ltd and Janalakshmi Financial Services Pvt Ltd were among the 10 granted approval to seek one of the niche small finance bank licences. Most of the others were microfinance companies that already make small loans to businesses and farmers.

Lenders will not need prior central bank approval to make equity investments if they have a capital risk-weighted asset ratio of 10 percent or more and have made a profit in the last financial year, the Reserve Bank of India said on Wednesday.

The RBI added the equity investments done without prior approval would need to be less than 10 percent of the paid-up capital of the company, or less than one-fifth of paid-up capital if including subsidiaries or joint ventures.

COMMODITIES

Oil prices were steady in early trade on Thursday after a large U.S. stock draw tightened the market, while traders kept a close eye on whether the Federal Reserve would later in the day raise interest rates for the first time in almost a decade.

Gold retained overnight gains from its biggest jump in nearly a month on Thursday as sluggish U.S. inflation data eased fears the Federal Reserve would hike interest rates later this session.

With Reuters input