The latest US Federal Reserve s statement, signalling three rate cuts next year, is unlikely to change interest rate trajectory in India with the monetary policy committee focussing on domestic factors but could nudge the central bank to revise its stance, say economists.
Global rating agency S&P Global Ratings has revised India s Gross Domestic Product (GDP) growth projection for financial year 2024 to 6.4 percent from 6 percent earlier on the back of strong domestic tailwinds.
“Domestic inflows and some easing off within the FII outflows are taking the market higher, The geopolitical uncertainty still remains high and that is likely to impact the markets. On the domestic side, the flows are impacting the market. In addition to that, we expect some kind of volatility may creep into the market because the elections are around the corner.”