Indian stock markets opened on a muted note Tuesday as investors adopted a cautious stance, closely tracking the resumption of Indo-US trade negotiations and awaiting the US Federal Reserve's policy outcome later this week.
Indian stock markets opened almost flat in green on Monday as investors remained cautious ahead of several key monetary policy decisions scheduled this week by global central banks.
The US Federal Reserve will have to time its interest rate cuts carefully as new tariffs could push inflation higher next year, making policy choices over the next three to six months particularly crucial, according to a report by Union Bank of India.
The likelihood of a 25 basis points rate cut by the US Federal Reserve in September has increased, but the final decision will depend on upcoming economic data, according to a recent report by ICICI Bank.
The possibility of a US Federal Reserve rate cut in September remains open, but it will largely depend on how the labor market and inflation evolve, noted a recent report by Union Bank of India research.
As the US Federal Reserve gears up for its latest policy announcements, economists and market experts believe that the central bank is likely to keep interest rates unchanged, while keeping the door open for future rate cuts later this year.
The US Federal Reserve in continuing the rate cut cycle cut the interest rate by 25 basis points, according to an official statement following the key FOMC meeting.
The Reserve Bank of India (RBI) is expected to maintain its policy rate during its upcoming meeting next week, as GDP growth slowed significantly in the second quarter of FY25. However, the likelihood of a rate cut in February has increased, according to a report by HDFC Bank.
The Federal Reserve Chair, Jerome Powell, indicated that the anticipated rate cuts may be delayed, as the US economy continues to show signs of strength.