Powell’s comments seem to have allayed to some extent fears that the interest rate cut would be pushed away to November traders are now eyeing a rate cut as early as September.
Sensex and Nifty opened higher ahead of the Interim Budget after US Fed Chair Jerome Powell dismissed hopes of rate reductions in March. Indian Prime Minister Narendra Modi is expected to focus on infrastructure and narrow the budget gap in the budget before the general election. Shares of Paytm plummeted 20% after the Indian central bank restricted Paytm Payments Bank. Nifty Auto, FMCG, Media, Pharma, and Oil & Gas opened higher, while Nifty Financial Services, IT, Metal, Realty, and Consumer Durables opened lower. Budget 2024 expectations include increased allocation for rail, roads, and other infrastructure projects.
Indian benchmark indices hit another peak in intra-day deals today with both the Sensex and the Nifty up over a percent each after the US Fed signaled that its interest rate-hiking policy is at an end and it will cut rates in 2024.
Nifty and Sensex hit record highs in trade today after the US Fed signaled that its interest rate-hiking policy is at an end and it will cut rates in 2024. Amid the rally, brokerages have come out with a bearish view (sell/reduce calls) on three stocks.
Historically, it was observed the bond yields in other countries, including India, rose when US yields showed any uptrend and vice versa. However, the quantum of increase varies depending on domestic factors.