Page 17 - Us Fed News Today

Triggering a massive rally by the US Fed message, BSE Sensex is up 847 points at 70,431 points on Thursday

After its two-day monetary policy meeting, the Federal Reserve revised key forecasts: 2024 median fed funds target rate dropped to 4.6% (from 5.1%) and 2025 rate to 3.6% (from 3.9%)

Analysts at ING said the Fed guidance "of the extent of additional policy firming that may be appropriate", was adjusted "to the extent of any additional policy firming", adding that that offered "the clearest hint yet" of an acceptance by the Fed that interest rates have peaked.

All 10 stocks in the Nifty IT index were in the green. The midcap counter Coforge was also up over 5% and hit its 52-week high of Rs 6,139.95 on the NSE. Notably, the top five gainers in the Nifty index were also from the IT space with Tech Mahindra taking the lead with near 4% gains. Others including HCL Technologies, LTIMindtree, Wipro and Infosys gained up to 3.5%.

So far, the Fed had been maintaining that rates could remain higher for longer because it was not convinced that inflation was fully under control.

Indian benchmark indices hit another peak in intra-day deals today with both the Sensex and the Nifty up over a percent each after the US Fed signaled that its interest rate-hiking policy is at an end and it will cut rates in 2024.

Analysts say the IT space offers reasonable valuations compared to their historical averages, a rarity in the ongoing bull run in the market

A rate cut may weaken the dollar, prompting investors to explore alternative assets, including the Indian rupee. Foreign investors may get drawn to Indian equities, potentially leading to increased capital inflows

On the back of buying by foreign investors as well as the unwavering support shown by domestic institutions and retail investors, Sensex has rallied around 3,500 points in December alone

Despite Indias current outperformance, challenges remain, including a policy-induced global economic slowdown and domestic macroeconomic issues like fiscal deficit and reliance on government borrowing for growth