Indian stock markets opened on a muted note Tuesday as investors adopted a cautious stance, closely tracking the resumption of Indo-US trade negotiations and awaiting the US Federal Reserve's policy outcome later this week.
Gold futures breached the USD 3,600 per ounce mark on Monday, marking their fresh all-time high, on expectations that the US Federal Reserve will cut the key policy rate.
US President Donald Trump has confirmed his leading choices to replace the current US Federal Reserve Chair Jerome Powell, naming three of his close aides as top picks for the position, The Hill reported.
In one of his most consequential speeches, Powell suggested the labor market could benefit from lower rates, which the Federal reserve has kept unchanged for eight straight months.
The Reserve Bank of India's Monetary Policy Committee (MPC) could consider reducing policy rates further if upcoming GDP data comes in lower than expectations and the US Federal Reserve begins aggressive rate cuts due to a weaker labour market, according to a report by HSBC Mutual Fund.
The US Federal Reserve will have to time its interest rate cuts carefully as new tariffs could push inflation higher next year, making policy choices over the next three to six months particularly crucial, according to a report by Union Bank of India.
The likelihood of a 25 basis points rate cut by the US Federal Reserve in September has increased, but the final decision will depend on upcoming economic data, according to a recent report by ICICI Bank.
The possibility of a US Federal Reserve rate cut in September remains open, but it will largely depend on how the labor market and inflation evolve, noted a recent report by Union Bank of India research.
India's equity benchmarks remained muted on Thursday and ended with a marginal loss, possibly due to the ongoing geopolitical conflict in the Middle East and cautious signals from the US Federal Reserve, dampening investors' sentiment.
The US Federal Reserve on Thursday morning (IST) decided to keep its benchmark interest rates unchanged at 4.25-4.50 per cent, maintaining its cautious stance amid evolving economic conditions.