The market has seemingly priced-in a 25-basis points rate cut from the US Fed this week; a 50-bps cut would send a cautious signal to the market and weigh negatively on market sentiment.
The Fed had begun raising interest rates in 2022 in response to a surge in inflation caused by post-pandemic supply issues.
The Nifty could open with a gap on either side tomorrow due to the current uncertainty in direction. Therefore, implementing a strangle strategy could be beneficial to capitalise on potential volatility.
Wall Street's main stock indexes built on Wednesday's sharp gains after data showed that consumer prices rose modestly in June, registering the smallest annual increase in more than two years.
Analysts believe that the much- anticipated 25 basis point Fed hike this time will have minimal impact on the strength of Indian markets
The focus of investors is now going to shift towards the federal reserve’s policy decision on the most recent rate hike and the commentary of the chairman Jerome Powell on the way forward for the US economy.
Views are divided but it is highly likely that the US Federal Reserve delivers a 75bps hike
The central bank's policymakers expect inflation to remain elevated and to end 2022 at 4.3%, according to updated quarterly projections they released on March 16.
Financial markets will look to the Federal Open Market Committee meeting for a timeline by which the US central bank will pare its bond holdings, guidance for future rate hikes, forecast on GDP growth and inflation.
While the Fed reassured markets that it won’t raise the federal funds rate, the biggest issue is the markets still have doubts about inflation given strong growth and the big stimulus package
In the June policy, the Fed chose to concentrate on the US' economy rather than be distracted by emerging market woes
Udayan Mukherjee, Consulting Editor, CNBC-TV18 says there is growing conviction that levels of 10000-10100 will act as solid support and market may have formed a higher bottom.
Although the Fed is keenly watching for some more evidence on the jobs market, the layoffs in the US have been at all time lows, says Glassman.in an interview to CNBC-TV18.
David Forrester, senior vice president of G-10 forex strategy at Macquarie expects further weakness for the dollar index.
Manish Singh of Crossbridge Capital LLP believes soft energy prices are a big positive for emerging markets and one should buy into these markets with a 6-12 month perspective.
Job growth cooled in August, with nonfarm payrolls adding just 142,000 even as the unemployment rate fell to 6.1 percent, according to the Labor Department.
Announcement of tapering could bring about a sea change in foreign exchange in January, which would lead the dollar to strengthen against other currencies like yen, euro, which in turn would be good for Japanese and European equities but bad news for emerging markets, says Nakisa
Indian shares could consolidate after the recent run up, feels Adrian Mowat of JP Morgan, but does not see uncertainty over the outcome of the general elections as a big dampener.
In an interview to CNBC-TV18, Patrick Legland, Global Head of Research, Societe Generale spoke about US debt situation, Fed tapering, and global market cues.
The 67-year-old vice chair of the Fed is the first woman to even be considered to lead it, and the first nominated to lead a major central bank—one of the highest glass ceilings remaining for women.
The new RBI chief, in his first speech, had hinted inflation will form the basis for framing the next monetary policy. With inflation coming in at 6.1 percent, experts are concerned that growth will not be given due importance, this time too.
Nariman Behravesh, Chief Economist, IHS spoke to CNBC-TV18 on the US economy and what to expect from the Federal Open Market Committee (FOMC), next week.
At Emkay within private sector banks they prefer ICICI Bank, HDFC, HDFC Bank over Axis. They have been overweight on IT and recommend buying Hexaware Technologies and eClerx Services.
"This is a week when the Australian dollar could break USD 0.90 or squeeze higher," Kathy Lien, managing director at BK Asset Management wrote in a note late Monday, referring to the three risk events.
Andrew Holland is of the view that the broader market is telling the real story. He expects further outflows for India going forward because of redemptions from emerging markets.