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Federal Reserve officials leaned towards reducing the benchmark interest rate in September, assuming inflation keeps declining. Minutes from the July meeting indicated likely policy easing, with Chair Jerome Powell expected to provide more details in an upcoming speech. Recent economic data presents a mixed picture, affecting trader expectations and economic sentiment.

In early August, foreign investors sold ₹14,790 crore worth of shares in financial services, the highest among all sectors. Key reasons included merger issues and benchmark changes. Other sectors like metals & mining and construction materials saw significant sell-offs. However, there were inflows totaling ₹9,819 crore across eight sectors in the same period.

The equity indices rose on Wednesday, buoyed by FMCG, consumer durables, and healthcare sectors with strong domestic institutional support. ICICI Securities dropped 7.52%, while Reliance Power climbed 5% and Nykaa soared 9.65%. Analysts suggest focusing on key support and resistance levels for these stocks to harness potential gains.

​So, we are really seeing a lot of these companies changing the business model and having a far faster path to profitability and low cash burn and hence as they are all sort of doing this, you are seeing the market starting to re-rate them.

Dipan Mehta, Director at Elixir Equities, discussed market valuations and the lack of corrections since COVID. He advised caution in banking and auto sectors due to stagnation and potential cyclical downturns. Mehta is optimistic about long-term prospects, particularly in industries like smart meters, but is currently holding cash for strategic investments during corrections.

Markets increased on Wednesday. Zomato approved a deal with Paytm. Coal India pursued lithium acquisitions. Zen Technologies launched a QIP. BEML signed an MoU with the Indian Navy. IREDA considered raising funds. Welspun Enterprises, Alkem Laboratories, India Grid Trust, and Cyient also saw notable activities.

Asian stocks saw a rise as markets anticipated key announcements from the Federal Reserve and Bank of Japan. The MSCI Asia Pacific Index increased by 0.2%, with gains observed in Japan, Australia, and South Korea. Fed minutes suggested a potential rate cut, and China launched an anti-subsidy probe into EU dairy imports, escalating trade tensions.

Cyient Ltd sold 14.5% of its subsidiary Cyient DLM, raising Rs 879 crore. Major investors like Morgan Stanley and HDFC Mutual Fund acquired the stake. Funds raised will support the semiconductor business and debt repayment.

Indian markets posted modest gains on Wednesday, driven by consumer stocks, though a decline in financials weighed on benchmark indices. The short-term trend for the Nifty remains positive with range-bound movement.