(Updates for markets open)

Sept 15 (Reuters) - India's equity benchmarks are off to

a muted start on Monday, in line with other Asian peers, as

investors awaited this week's U.S. Federal Reserve meeting,

where policymakers are widely expected to resume the easing

cycle.

Separately, India's retail inflation accelerated to 2.07% in

August, but stayed well within the central bank's tolerance

band, leaving room for another rate cut this year.

The Nifty 50 added 0.02% to 25,118.9 and the BSE

Sensex was up 0.03% to 81,925.51 as of 09:15 a.m. IST.

Twelve of the 16 major sectors advanced at open, though the

gains were marginal. The broader small-caps and

mid-caps rose about 0.2% each.

Asian stocks got off to a quiet start ahead of an

action-packed week that is seemingly certain to see the Fed cut

interest rates, and perhaps leave the door wide open to a series

of cuts.

The Nifty 50 rose 1.5% last week, notching an eight-session

winning streak on Friday, buoyed by rising bets for a Fed rate

cut, prospects of progress in U.S.-India trade talks and the

government's tax cuts to boost consumption.