Page 11 - Us Fed News Today

Last week, Indian equity benchmarks ended the extended trading week in red terrain as traders opted to book profit at all-time high levels amid tensions in the Middle East and dimming rate cut hopes by the US Fed.

While experts believe that the market valuations were expensive on the back of multiple new peaks hit since September last year, do the recent corrections make for a good buying opportunity?

The Indian stock market continued its decline for the third consecutive session on Thursday, influenced by weak global cues. In a recent note, Kotak Institutional Equities noted that the market’s extreme focus on incremental developments versus fundamentals will add to challenges for the investors.

The Fed must make the tough call on when to ease rates. Amid heightened risks of a major policy blunder, the impact of its decision on Asia – where the case for a looser policy is stronger – cannot be ignored.

The US Federal Reserve is "within striking distance" of reaching its long-term inflation target and could begin cutting interest rates this year, a senior official said Tuesday.

Officials will probably loosen monetary policy in 2024, but they have reasons to move more slowly than investors are betting

The market rally has run out of steam, prompting concerns about whether stocks ran too far too fast

The US market is adjusting to the disparity between market expectations and the Feds actions, with fewer rate cuts expected. Bank earnings and a pessimistic outlook are contributing to the slowing down of the market. However, the BOFA fund manager survey suggests that long-term bond yields in the US will decrease, leading to increased funds flowing into emerging markets like India. Indias strong growth, stability, and execution make it a magnet for investors, especially as funds flow out of Chin...

Last week, Indian markets witnessed modest gains with Sensex and Nifty hitting new record closing highs in the last trading session led by a sharp rally in IT stocks.          

Srikanth Subramanian says: "In 2024, if the much-anticipated rate cuts do happen, one factor of uncertainty would be behind us. So, a majority of the money getting freed up from treasuries or fixed income per se will tend to move to equities. And with Gold having a yearly outlook is quite challenging, largely because gold is a hedging bet."