Indian stock markets opened on a strong note on Thursday as investors welcomed the U.S. Federal Reserve's decision to cut interest rates by 25 basis points.
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.
The US Federal Reserve on Thursday morning (IST) decided to keep its benchmark interest rates unchanged at 4.25-4.50 per cent, maintaining its cautious stance amid evolving economic conditions.
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.