Benchmark indices on Wall Street had yet another positive session on Monday in anticipation that the US Federal Reserve will not hike interest rates in its latest policy meeting starting tonight. The Dow Jones gained nearly 200 points while the S&P 500 and the Nasdaq closed at a 13-month high.

Back home, the Nifty 50 index managed a close above the 18,600 mark, even as it traded in an extremely narrow band. 18,600 - 18,650 continues to remain the range with all the action shifting to the midcap index. The Nifty Midcap index ended with gains of 0.5 percent on Monday, following a two-day drop. FIIs were sellers in the cash market on Monday while Domestic Investors were buyers. One must remember that the numbers will be influenced by the Go Fashion block deals.

As we mentioned earlier, the two-day FOMC meet begins tonight and the interest rate decision will be reported later on Wednesday night. The expectations are that the US Federal Reserve will refrain from hiking interest rates this time around.

In more positive domestic macro cues, India's retail inflation dipped to a 25-month low of 4.25 percent in May. This is the fourth straight month of decline for the CPI and the third month in a row that it has remained below the Reserve Bank of India's comfort zone of 6 percent.

In stock specific action, Tata Motors continues to be in focus as Jaguar Land Rover (JLR) is targeting revenue of 28 billion pounds in financial year 2024 and 30 billion pounds in financial year 2026. It also aims to reduce the net debt to zero by financial year 2025, thereby maintaining its earlier guidance.