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.
Before the outflow, FPIs were incessantly buying Indian equities in the last six months from March to August and brought in Rs 1.74 lakh crore during the period.
Besides, foreign fund trading activity and global trends will also dictate terms in the equity market going ahead.
He noted that January figures for employment, consumer spending, manufacturing production and inflation pointed to a partial reversal of earlier softening trends.
The US central bank announced a quarter-point hike to the benchmark lending rate at the end of its two-day policy meeting, taking the rate to a target range of 4.50-4.75 percent.
Spot gold fell 0.4% to $1,829.89 per ounce by 1056 GMT. U.S. gold futures inched 0.4% lower to $1,830.70.
Money markets priced in a 28.5-bps-rate hike in March and as many as 119.5 bps in cumulative increases by year's end as the dollar stayed in the limelight after a week highlighted by a hawkish Federal Reserve meeting.
Spot gold was up 0.2 percent at $1,249.90 an ounce, as of 0751 GMT, after hitting its lowest since July 26 at $1,243.71 last week.
Spot gold was nearly unchanged at $1,275.63 per ounce at 0431 GMT. On Friday, gold dropped 0.7 percent for its biggest one-day percentage fall since Oct. 26, weighed down by a rise in U.S. Treasury bond yields.
Spot gold was nearly unchanged at $1,293.76 an ounce at 0054 GMT after gaining for five straight sessions.
Gold slumped to a 10-month low in mid-December after rates were increased for the first time in a year, but gold investors don't appear to be as jittery ahead of the next Fed meeting and a near-certain rate rise on March 14-15.
Kotak Mutual Fund is bullish on automobiles, cement and oil & gas companies, the fund‘s Chief Investment Officer-Equity, Harsha Upadhyaya told Moneycontrol.
Investors puzzled over whether US interest rates are rising due to a stronger economy or because of fears about inflation might want to look at the recent gains in REITs for some useful guidance.
It also said that with the enabling laws for the Goods and Services Tax (GST) not being tabled in Parliament during the Winter session, the implementation of the most important tax reform looks quite difficult from April 1, 2017.
Yellen said Fed policymakers at their meeting earlier in November judged that the case for a rate hike had strengthened.
A solid US labor market "has strengthened" the case for the first rate increase since last December, Fed Chair Janet Yellen told a central banking conference in Jackson Hole, Wyoming. Several of her colleagues said the increase could come as soon as next month if the economy does well.
Making USD 250 a month, and faced with a pay cut as construction jobs in Qatar became scarcer, Joseph realised he could no longer afford monthly instalments on his house and son's education. In January, after 15 years in the Gulf, he decided to go home.
The rupee's appreciation reflects a broad move into high yield emerging markets by investors, as central banks for major economies - notably the Bank of Japan and European Central Bank - have adopted a more dovish stance.
Gains also tracked higher regional markets following comments from Federal Reserve chair Janet Yellen calling for caution in raising US interest rates.
A total of 13 of 21 primary dealers, brokerages that deal directly with the Federal Reserve, say the Fed will next raise rates in the first quarter, after it raised the range of its benchmark interest rate by a quarter of a percentage point to between 0.25 percent and 0.50 percent on Wednesday.
The restrained reaction, especially from emerging markets, to the Federal Reserve's signals has been encouraging, the quarterly update from the Switzerland-based forum for major central banks said, though it expected volatility to return.
Poor disclosure among India-listed firms is a turnoff for foreign investors, a weakness Asia's third-largest economy can ill afford as competition for overseas capital heats up among emerging markets in expectation of higher US interest rates.
The ECB's likely cuts come as the US Federal Reserve is widely expected to implement its first hike to its benchmark rate in nine years at its December meeting. That's likely to strengthen the dollar as it will increase expected returns in the US.
Gold has fallen more than 5 percent since the start of November, when a stronger than expected US payrolls report fuelled expectations for a near-term rate hike.
"US Fed keeps rates unchanged. Emerging markets get more space. India better prepared to deal with Fed policy reversal when it comes," Economic Affairs Secretary Shaktikanta Das tweeted.