Market Ahead Podcast, Sep 21: Top factors that could guide markets today

A global rout wiped off Rs 3.5 trillion in investor wealth on Dalal Street on Monday.

The S&P BSE Sensex dropped 525 points to 58,491 levels while the Nifty50 fell 188 points to 17,397 as investors turned cautious ahead of a series of central banks’ meetings.

The US Federal Reserve's policy meeting will be one of the widely tracked meetings today, to gauge if the central bank will lay the groundwork for a tapering.

That apart, central banks of China and Japan are also slated to announce their interest rate decisions on Tuesday.

Given an overall guarded mood in the markets, analysts believe yesterday’s sharp profit booking could drag the Nifty to 17,150 levels over the next few sessions.

While the trading zone of 17,525-17,625 will act as a strong resistance zone, 17,45-17,500 will act as support levels.

Meanwhile, in the primary market, Paras Defence and Space Technologies, will open its initial public offer today.

At the top end of the price band of Rs 165-175 per share, the company looks to raise Rs 171 crore.

Analysts have mixed views on the offer. While some of them are bullish on the company given its niche product profile, dominant market positioning and vast growth potential, others are skeptical owing to its rich valuations relative to peers.