Bharat Express

US Federal Reserve

The Indian stock market opened flat on Friday as the hawkish stance from the US Federal Reserve started to fade. Buying was observed in the auto, media, and energy sectors, driving Nifty performance.

The Fed trimmed rates by 25 basis points but halved its forecast for cuts in 2025, focusing on employment and price stability. This move disappointed global investors, triggering a sell-off across major markets.

The US Federal Reserve’s second 25-basis-point rate cut to 4.75% boosts optimism in emerging markets, including India.

The US Federal Reserve reduced interest rates by 25 basis points, as the economy faces a cooling labour market and persistent inflation.

Indian benchmark indices experienced a significant boost following a surprising 50 basis points rate cut by the US Federal Reserve.

Among sectoral indices, Auto, financial services, FMCG, real estate, and private banks were major gainers. In contrast, IT, PSU banks, pharma, metals, media, and energy sectors lagged.

If the US economy remains strong and inflation persists, the Fed would be prepared to maintain the current target range for the federal funds rate as long as appropriate

Raising interest rates is a monetary policy instrument that typically helps suppress demand in the economy, thereby helping the inflation rate decline.

In the year 2023, the 30-share BSE Sensex jumped 11,399.52 points or 18.73 percent.