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.
Investors across financial markets, including in India, will look for fresh cues from the outcomes of the upcoming US monetary policy review meeting later this week, particularly the extent of interest rate cut, if any.
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.
Investors across financial markets, including in India, will look for fresh cues from the outcomes of the upcoming US monetary policy review meeting next week, particularly the extent of interest rate cut, if any.
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.
"We believe price hikes may have to be rolled back by month-end due to weak demand. Even so, demand is likely to pick up from Q3FY25, which should support prices somewhat," says the Nuvama report.
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.
Expectations of strong festival season demand, revival in rural demand, and hopes of interest rate cuts later this fiscal year are expected to support stock markets, brokerage Prabhudas Lilladher said in its latest 'India Strategy' report.