The US markets closed flat with negative bias on Monday, in a volatile session ahead of the start of a pair of closely watched central-bank policy meetings. Earlier in the session, gains in crude-oil futures and a report showing a surge in home-builder confidence appeared to help lift the equity benchmarks, but those advances evaporated late in the day. Market participants mostly focused on the Federal Reserve’s policy meeting beginning Tuesday. The vast majority have ruled out a possible rate increase at this point. CME Group’s FedWatch tool indicates a 12% probability of a September rate increase. Apart from the Fed meeting, investors are also fretting about announcements from the Bank of Japan, which is holding its two-day policy meeting during the same period as the Fed. On the economy front, home builder confidence surged in September to match its highest reading in a decade. The National Association of Home Builders’ index jumped six points to 65 in September. That was the highest since last October, which was the highest since the height of the housing boom. The gauge of current sales conditions soared 6 points to a cycle high of 71 and the index of future sales jumped 5 points, also touching 71. The index that tracks buyer traffic rose four points to 48. It hasn’t topped the neutral 50 mark since mid-2005.
The Dow Jones Industrial Average lost 3.63 points or 0.02 percent to 18,120.17, Nasdaq dropped 9.54 points or 0.18 percent to 5,235.03, while S&P 500 was down 0.04 points to 2,139.12.
The Indian ADRs closed in green; HDFC Bank was up 0.53%, Dr. Reddy’s Lab was up 0.24%, Tata Motors was up 0.21%, Wipro was up 0.18% and ICICI Bank was up 0.13%.
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