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The market is expected to open flat today as investors remain cautious amid mixed global cues. Asian stocks eased near two-and-half-year highs on Tuesday and the U.S. dollar firmed following hawkish comments from Federal Reserve Chair Jerome Powell that scuppered bets of big interest rate cuts, while Mid-East tension kept risk sentiment in check. The S&P 500 sputtered to a record high close on Monday, rebounding from a brief setback after Federal Reserve Chair Jerome Powell said the U.S. central bank is in no hurry to implement further interest rate cuts. The Dow also posted an all-time closing high. The three major U.S. stock indexes registered gains for the quarter and for the month. Oil prices were steady and gold traded just below a record high touched last week as investors awaited U.S. labour data for more clarity on the pace of U.S. rate cuts.

As per provisional figures, Foreign Institutional Investors (FIIs)/ Foreign Portfolio Investors (FPIs) sold shares worth net Rs.9791.93 crore and Domestic institutional investors bought shares worth net Rs.6645.80 crore on 30^th September 2024.

India's fiscal deficit remained under control during April-August, reaching 27% of the full-year target. This containment was attributed to muted spending in the early months of the fiscal year. The government's spending has been lower due to general elections. In comparison, the deficit stood at a higher 36% during the same period in FY24.

Asian stocks retreated slightly from their recent two-and-a-half-year peaks on Tuesday. This followed hawkish comments from Federal Reserve Chair Jerome Powell, which dampened expectations for aggressive interest rate cuts. The U.S. dollar strengthened in response. Meanwhile, heightened tensions in the Middle East added to market uncertainty. With mainland China's financial markets closed for the remainder of the week, the recent rally in Asian markets is expected to pause. Hong Kong's Hang Seng is also closed on Tuesday. U.S. equities closed higher on Monday, recovering from earlier losses triggered by Powell's remarks. The Dow Jones Industrial Average rose by 0.04% to a record closing high of 42,330.15. The S&P 500 gained 0.42% to also reach a new record close of 5,762.48. The Nasdaq Composite added 0.38%.

Investors had anticipated more aggressive rate cuts from the Federal Reserve in its final two meetings of the year. However, Powell indicated that the central bank would likely stick to quarter-point rate reductions moving forward, citing recent economic data that showed strong growth and consumer spending.

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