The US economy is unlikely to enter into a recession in 2023, minutes of the Federal Reserve’s July monetary policy review meeting showed, and noted that spending and real activities had improved after the banking crisis experienced earlier this year.
Indian stock indices plunged Thursday morning tracking weak global benchmark US markets, which fell as its central bank Federal Reserve said another hike in interest rate may be needed to tame inflation and bring it to 2 per cent target.
US Federal Reserve Governor Michelle W Bowman has said an additional interest rate increase will likely be needed to get inflation on a path down to its 2 per cent target.
Indian stock market experienced an increase in value with 0.29 per cent hike in the Nifty and 0.23 per cent hike in the Sensex on Thursday after the US Federal Reserve raised interest rates by a quarter of a percentage point on Wednesday.
Indian stock indices traded largely steady on Thursday morning after their all-time highs reached in the previous session. Meanwhile, analysts cautioned high valuation may keep investors at bay for the time being.
Indian stock indices traded higher on Friday morning, getting support from the US central bank's latest monetary policy stance - which finally paused the interest rate after raising it for over a year.
Barring the latest pause, the US central bank has hiked the interest rate for the tenth consecutive time which was necessitated in the fight against soaring inflation.
Fresh jobs data released on Friday could help to inform policymakers as they try to decide whether this is the right moment to take a break, the daily newspaper said.
BSE 30-share Sensex went up 345 points and settled higher at 62,846 while NSE Nifty surged 99 points and ended at 18,599. Nifty had an intra-day high of 18,641. The Bank Nifty hit a fresh all-time high at 44,483. BSE banking index eventually ended 0.7 per cent higher at 44,312.