Nifty may reclaim 7900 at opening; all eyes on Fed meet

Moneycontrol BureauIndian shares are likely to surge at open, following a Wall Street rally overnight, as markets go into a crucial Federal Reserve monetary policy meeting with expectations the Fed won't hike interest rates.In Singapore trading, the SGX Nifty was trading up 73.50 points, or nearly 1 percent, to 7,896 level at 7:45 am today.Key Asian markets were broadly higher too, with Hong Kong's Hang Seng leading with 1.3 percent gains.The Nifty's gap-up opening today would come up a day after shares fell. Traders, however, said they expect volatility to continue in the near term and the outcome of the Fed meet would be known by Friday morning in India.US August retail increased 0.2 percent and the industrial production decreased 0.4 percent lower than the expected 0.2 percent. In European markets yesterday, equities gained 1 percent. The closely-watched German Zew Economic sentiment index dropped to 12.1 percent in September from 25 points in August. In other asset class, the US dollar gained following strong retail data, Nymex crude gained after White House said it would oppose lawmakers' bid to reverse a 40-year-old ban on crude oil exports.  Gold continued to hover around USD 1105 an ounce in Tuesday’s trade.