Nifty to tread with caution, open soft; all eyes on Fed

The global markets closed lower yesterday and the SGX Nifty too is trading in the negative down minus 6.50 points up at 7867 around 7:45 am, suggesting a flat to negative opening for the Indian equity market Tuesday. However, yesterday the market had recouped all its losses for the month - a late rally lifted sentiment as Nifty moved closer to 7,900 and Sensex rallied almost 250 points.     Asian markets too have opened up mixed this morning. Japan and Korea are higher but the Taiwanese and Singapore markets are trading with mild cuts.  The Nikkei has headed north this morning ahead of the Bank of Japan’s policy decision.Consensus is for the central bank to maintain its expansionary monetary policy but some analysts are not ruling out the possibility of additional stimulus given recent growth concerns.However, in the US stocks closed lower as investors eyed the Federal Reserve meeting later in the week. In Europe too, stocks closed mostly lower as investors are cautious ahead of the US Federal Reserve's interest rate decision on Thursday.From other asset class, the dollar held close to a three-week low against a basket of major currencies ahead of this week's Federal Reserve meeting.The Nymex crude trades around USD 44 per barrel even after a tumble in gasoline prices and Brent holds above the USD 46 dollar per barrel mark.The for the precious metal gold, the prices continued to trade around USD 1105 an ounce.From other news back homeInflation was well and truly on the "glide path" with retail inflation slowing to 3.66 percent in August, a tad higher than expectations.Meanwhile, in a bid to arrest cheap dumping of Chinese steel, government imposes a safeguard duty of 20 percent on select products for 200 days.Gujarat topped the list in the ease of doing business rankings released by the world bank and the DIPP. Andhra Pradesh, Jharkhand, Chhattisgarh and Madhya Pradesh complete the top 5.