This week will be dominated by the corporate earnings releases and the highly anticipated Federal Open Market Committee (FOMC) meeting scheduled for April 30 to May 1.
Foreign portfolio investors (FPIs) have turned net sellers in Indian stocks lately, after the ongoing geopolitical crisis in the Middle East, which has likely pushed investors to take money off their portfolios.
Morgan Stanley is firm on India's growth outlook given the support it is getting from the domestic demand. Citing high-frequency data, the global investment banking firm said it remains constructive on the growth outlook.
Noting that that economic growth in 2024-25 is projected to slow by over half a percent relative to 2023-24, Varma said it was a reminder that high interest rates entail a growth sacrifice.
Inflation continues to remain the main concern for the Reserve Bank of India's monetary policy committee members before it goes ahead and loosens its stance on key interest rates.
Pressure in food prices has been interrupting the ongoing disinflation process in India, and posing challenges for the final descent of inflation trajectory to the 4 per cent target, as per minutes of RBI's monetary policy meeting that was held earlier this month.
US Federal Reserve Vice Chair Philip N Jefferson believes it will be appropriate to maintain the current restrictive monetary policy stance, to align inflation with 2 per cent.
The annual rate of inflation based on all India Wholesale Price Index (WPI) numbers is 0.53 per cent (Provisional) for March 2024 (over March 2023), showed official data on Monday.
As the Reserve Bank of India (RBI) maintained the status quo in repo rate for the seventh time this month, rating agency Crisil now expects the rate cut cycle to begin from mid-2024. The repo rate is the rate of interest at which RBI lends to other banks.
Rating agency Moody's believes an interest rate cut at US Federal Reserve June's meeting is likely off the table given stubborn inflation in the country.
US Federal Reserve officials felt that the key interest rate was likely at its peak and it would be appropriate to loosen the monetary policy stance at some point this year, Minutes of its latest policy review meeting showed.
US Federal Reserve officials expect it would not be appropriate to reduce the key interest rate until they gain "greater confidence" that inflation is moving sustainably toward a comfortable 2 per cent, minutes of its latest monetary policy meeting showed.