"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.
The Nifty 50 index opened at 25,406.65 points, gaining 50.15 points or 0.2 per cent, while the BSE Sensex surged 94.39 points at opening to 82,985.33 or 0.11 per cent.
As the date for the U.S. Federal Reserve's anticipated rate cut draws near (September 18), investors remain cautiously optimistic about its potential effects on various sectors.
American central bank US Federal Reserve will most likely cut key interest rates twice this year -- once this month and again in December, anticipates S&P Global Market Intelligence.
The Indian stock markets are on the brink of entering a new phase, marked by potential rate cuts from the U.S. Federal Reserve, highlighted a report by Nuvama.
The global shift towards gold as a hedge against macroeconomic risks is also being reflected in India. The uncertainty surrounding the US election and potential rate cuts has driven up demand for safe-haven assets like gold.
The Federal Reserve, in its latest meeting, decided to keep the federal funds rate unchanged at 5.25 per cent to 5.5 per cent for the eighth time. In its statement, the Fed observed that job gains in the U.S. economy have moderated, while the unemployment rate has increased slightly but rema
The price of gold, which opened in the low USD 2,300s in early July, quickly surpassed the USD 2,400 mark and achieved a high of USD 2,483 this Wednesday, according to Metals Focus report.
Indian stock indices rose marginally Thursday morning after they witnessed mild losses in the previous session. Today's positive momentum could be linked to record GST collection in April coupled with overall stability in the economy.