Indian stocks were off to a positive start Wednesday, tracking firm overnight cues from the US markets after softer-than-expected US inflation data supported the view that its central bank may be done raising interest rates.
Federal Reserve Governor Michelle Bowman reiterated her view that she expected the central bank will need to increase the interest funds rate further to bring inflation down to its 2 per cent target.
Indian stock indices carried on with their gains from the past session, in line with the global stocks, after the US central bank's less hawkish stance on the monetary policy front.
Federal Reserve Chairman Jerome Powell dashed any hopes for a rate cut in the near future and said that the central bank is not "at all" thinking of the possibility currently.
On Friday, the Federal Reserve Board launched a comprehensive data collection initiative designed to gather critical information from the banks directly affected by this substantial proposal.
Originally, the comment deadline for both the large bank capital proposal and the Federal Reserve Board's proposal to modify the capital surcharge for the largest and most complex banks was set for November 30.
The monetary policy committee of the Reserve Bank of India (RBI) in its October review meeting unanimously decided to keep the policy repo rate unchanged at 6.5 per cent, thus maintaining status quo for the fourth straight occasions.
The selling spree continues in Indian stock markets for the third straight session after the US central bank while keeping its interest rate steady in the September meeting, hinted that it may again hike rates going ahead if need be, in its fight against inflation.
The US Federal Reserve in its September policy meeting left the key interest rate unchanged at 5.25-5.50 per cent but cautioned it may go for additional tightening of monetary policy if need be.
Going ahead into this week, investors are likely to tread carefully as the U.S. Federal Reserve's meeting scheduled Tuesday-Wednesday, its outcome due likely this midnight, will be closely monitored.
Indian stock indices opened marginally in the red on Monday, with the benchmarks witnessing mild profit booking. Investors may have taken some money off the table after the indices hit their fresh highs last week.