Indian Stocks Strengthen Ahead Of Fed’s Interest Rate Decision

Prior to the US Federal Reserve’s rate announcement on Wednesday, Indian Stocks increased as worries about a banking crisis subsided further in the wake of Credit Suisse’s bailout.

In early trade, the S&P BSE Sensex increased 0.17% to 58,168.80 while the Nifty 50 index increased 0.18% to 17,137.60.

Auto stocks and public sector banks saw gains of 0.7% and 1%, respectively, leading 12 out of the 13 key sectoral indexes higher.

Following the collapses of Silicon Valley Bank and Signature Bank, U.S. Treasury Secretary Janet Yellen committed to protecting depositors in smaller banks, causing global markets to soar.

For the time being, the Swiss government-backed takeover of Credit Suisse by UBS over the weekend alleviated fears about financial stability.

In the midst of banking contagion worries, markets throughout the world are awaiting the Fed’s decision. The probability of a 25-basis-point (bps) increase is 89.3%.

Also read: Hindustan Zinc Announces Fourth Interim Dividend Of Rs. 26 Per Share For FY23