US Fed meeting outcome today: How will it impact the Indian stock market?
Also read: US Fed meet begins today: What to expect amid sticky inflation? Top experts share their views According to data released by the Labor Department's Bureau of Labor Statistics on April 10th, the US consumer price index (CPI) increased by 0.4 percent month-on-month (MoM) and 3.5 percent year-on-year (YoY), surpassing Street expectations of 0.3 percent MoM and 3.4 percent YoY. Indian investors also will be closely watching how the Fed addresses the dilemma of balancing growth and inflation.
According to experts, a hawkish commentary by Federal Reserve can have a negative impact on the Indian markets. “If fed commentary is hawkish then it will have negative impact on Indian Markets.
Fed may not go for rate cut in the near future due to higher inflation numbers recently. The FOMC members are expected to keep rates unchanged at the end of their policy meeting on Wednesday, but their forward guidance will be closely watched as a more hawkish tone could push the U.S.
dollar and Treasury Yields higher and weigh on risk assets and equities," Tejas Shah, Technical Research, BlinkX & JM Financial, told Livemint. The Federal Reserve meeting primarily centers on economic indicators such as GDP, PCE, and job data, rather than solely on interest rates.
Also read: India VIX: Market volatility may rise ahead of election results, gains capped over priced-in stability; here's why Rahul Kalantri, VP Commodities at Mehta Equities, said, “No interest rate hike decision is expected tomorrow, minimizing potential impact on equity markets. Market analysts are attentively monitoring Federal Reserve commentary for insights into the upcoming June meeting." Experts also believe that the decision is unlikely to have a meaningful impact on
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