Market may open higher

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 29 points at the opening bell.

Meanwhile, the Union Cabinet on Tuesday cleared the proposal to set up a Development Finance Institution (DFI). Finance Minister Nirmala Sitharaman had announced in the Union Budget that the government will set up DFI to fund long-term infrastructure projects in the country.

The government will initially infuse Rs 20,000 crore in the DFI, Sitharaman said while briefing the media on Cabinet decisions, adding that the government plans to raise up to Rs 3 lakh crore in the next five years. The government will provide tax exemptions and also amend the Indian Stamp Act to attract pension funds, sovereign funds to invest in DFI.

DFI will have a professional board. At least 50% of the members will be non-official directors. Persons of eminence are envisaged to be on the board. "We are making sure that Board will be such as to meet the requirements of 21st century," Sitharaman said.

The DFI will start with 100% ownership of Government of India, and gradually government's ownership will be brought down to 26%.

Global markets:

Overseas, Asian stocks are trading mostly lower on Wednesday as investors wait for the outcome of the U.S. Federal Reserve's two-day policy meeting later in the day. All eyes are on the US Fed whether the central bank will maintain near-zero interest rates amid the economy's post-pandemic recovery.

In US, the Dow fell from its record high and snapped a seven-day winning streak on Tuesday ahead the Federal Reserve's upcoming policy announcement.

Domestic markets:

Back home, domestic equity benchmarks gave up initial gains and ended with tiny losses on Tuesday, despite favourable cues from global equities. The S&P BSE Sensex, fell 31.12 points or 0.06% at 50,363.96. The Nifty 50 index declined 19.05 points or 0.13% at 14,910.45.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,692.31 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,168.59 crore in the Indian equity market on 16 March, provisional data showed.

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