Can Nifty 50 climb to 23K this week after US Fed downplaying rate hike buzz?
Indian stock market today: Global equities witnessed a strong rebound after the US Fed meeting, which signaled a willingness to go for a rate cut once there is an ease in the inflation concerns. On Dalal Street, the frontline Indian indices and broad market witnessed buying interest during morning deals, which are still underway.
However, the Nifty 50 index is somehow not able to breach above 22,700 levels, which may put doubt into the bulls' minds. So, at this juncture, one may think whether the Nifty 50 index will touch 23,000 this week or we will have to wait for some time.
Decoding the US Fed meeting's impact on the Indian stock market, Sugandha Sachdeva, Founder of SS WealthStreet said, "As the US Fed has hinted at a willingness to cut interest rates despite sticky inflation, it may initially boost stock prices. Lower interest rates tend to be positive for stocks as they can stimulate economic activity and corporate profits.
However, the central bank has maintained a cautious stance. While there are indications of a cooling inflationary environment, the Fed has emphasized the need for greater confidence that inflation will reach the targeted 2 percent level before initiating any rate cuts." "This cautious approach reflects the central bank's commitment to ensuring stability in the economy and the financial markets.
In essence, while the possibility of monetary easing remains on the horizon, the Fed's insistence on building confidence in inflation reaching its target underscores the importance of data-driven decision-making and the careful calibration of monetary policy to support long-term economic growth and stability," Sugandha added. Speaking on the outlook for Nifty today, Sumeet Bagadia, Executive Director at
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