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Market may open higher

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SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 24 points at the opening bell.

In a big push for 'Make in India' for the defence sector, Finance Minister Nirmala Sitharaman yesterday announced raising the Foreign Direct Investment (FDI) limit in the defence sector under the automatic route from 49% to 74%. She also said that the import of some weapons and platforms will not be allowed.

At the 41st GST Council meet on Thursday, Finance Minister Nirmala Sitharaman gave states two options to bridge the funding gap created due to economic losses caused by COVID-19. States have been demanding compensation from the government to meet the shortfall in revenue caused by lockdowns to curb spread of COVID-19. The compensation gap of Rs 2.35 lakh crores this year is due to COVID-19 as well and the shortfall in compensation due to the implementation of GST has been estimated to be Rs 97,000 crores.

Global markets:

Overseas, most Asian stocks are trading higher on Friday after U.S. stocks scaled new peaks for a third straight day.

In US, the S&P 500 and the Dow advanced but the Nasdaq closed lower on Thursday as investors digested the US Federal Reserve's new strategy to adopt an average inflation target and restore the United States to full employment, as well as a promising development in the fight to contain the coronavirus pandemic.

Setting out the central bank's aggressive new strategy at a virtual Jackson Hole symposium, Fed chief Jerome Powell said it would offset below-2% periods with higher inflation for some time, and ensure employment doesn't fall short of its maximum level.

Data on Thursday showed weekly jobless claims hovered around 1 million last week, suggesting the labor market recovery was stalling.

Domestic markets:

Back home, domestic equity benchmarks ended a tad above the flat line on Thursday, with banks leading the gains. Select real estate stocks jumped after Maharashtra reduced stamp duty rates on apartments in the state. Trading was volatile due to monthly F&O expiry. The barometer index, the S&P BSE Sensex, advanced 39.55 points or 0.10% at 39,113.47. The Nifty 50 index gained 9.65 points or 0.08% at 11,559.25.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,164.32 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 809.27 crore in the Indian equity market on 27 August, provisional data showed.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Fri, August 28 2020. 08:26 IST