Experts say the surge in gold prices came amid a confluence of factors, including major central banks' dovish outlooks, slightly lower bond yields, and heightened geopolitical tensions.
As the fed rate cuts have increased the liquidity in the Indian markets, the Indian rupee will get support against the dollar and will trade around Rs 83.57, highlighted a research report by the Union Bank of India.
This valuation premium is notable, with MSCI India's premium to MXAPJ (MSCI Asia Pacific ex-Japan) standing at around 90 per cent, a significant rise from the five-year average of 54 per cent. While mid and small-cap indices are trading at peak levels, large-cap stocks remain below their his
Indian bond markets may witness high inflows in the coming months as the fed rate cut decision has made interest rate difference in India and other countries, highlighted a report by SBI.
In light of the recent 50 basis points (bps) rate cut by the US Federal Reserve, the Reserve Bank of India (RBI) may consider a similar move, potentially announcing a rate cut by February 2025, according to a report by SBI Research.
The US Federal Reserve's move to cut the rate by 50 basis points will facilitate flows to emerging markets. Experts say a weaker dollar and lower rates are favourable for India and emerging economies.
"Initially, the rate cuts will be credit negative for most US banks. We expect their deposit costs to reprice downward more slowly than their loan yields, constraining net interest income, which is most banks' largest revenue source." Said the report
Indian markets are in cautious mode as the Fed rate cut announcement will be made tonight, with both stock indices, Nifty and Sensex, opening flat on Wednesday with a marginal dip.