Categories: Business

Indian Stocks Strengthen Following Indications of Potential Rate Cut by US Central Bank in 2024

Indian stock indices showed strength on Thursday following a global surge in stock markets, prompted by the US Federal Reserve’s decision to maintain its projection of three rate cuts this year during its latest monetary policy review meeting.

As of 10:09 am, the Sensex stood at 72,724.62 points, up 622.93 points or 0.86 percent, while the Nifty reached 22,034.05 points, marking a gain of 194.95 points or 0.89 percent. Among the Nifty 50 stocks, 47 saw gains, while the remaining were in negative territory at the time of reporting.

The US Federal Reserve, in its March meeting, opted to keep the key interest rate unchanged at 5.25-5.50 percent for the fifth consecutive time. The central bank reaffirmed its plan for three interest rate cuts this year and expressed confidence in sustained economic growth.

The Fed’s stance is aimed at achieving its target of bringing consumer inflation down to 2 percent. Despite current inflation rates exceeding 3 percent in the US, the Fed believes that inflation will gradually align with its target.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the Fed’s decision to maintain rates and its non-hawkish stance has brought clarity to the market. The Fed’s acknowledgment of easing inflation alongside a strong labor market supports the view of a soft landing for the US economy and the likelihood of three rate cuts this year, leading to a positive market response and record highs in US indices.

Meanwhile, foreign portfolio investors (FPIs) have continued to be net buyers in the Indian market, contributing to the positive sentiment. After a period of aggressive selling in January 2024, FPIs turned net buyers in February and March, which has contributed to the recent uptrend in stocks.

Data from the National Securities Depository Limited (NSDL) indicates that FPIs have invested Rs 41,668 crore in Indian stocks so far in March, further bolstering market confidence and driving stock prices higher. This trend reflects both domestic and international investor optimism about the Indian market’s growth potential and economic outlook.

Isha Gautam

Recent Posts

Homer’s Epic Poem ‘The Odyssey’ To Be Christopher Nolan’s Next Movie

The next film from Christopher Nolan, The Odyssey adapts Homer's iconic epic poem for IMAX…

8 mins ago

Watch: Shafali Verma Scores 197 Off 115 Balls In Women’s One Day Cup Trophy

In a remarkable captaincy performance, Shafali Verma stunned the cricketing world by scoring 197 off…

11 mins ago

Former President Bill Clinton Hospitalized Amid Health Concerns

Former US President Bill Clinton, 78, has been hospitalized in Washington D.C. He was diagnosed…

24 mins ago

Is Elon Musk Going To Run The Entire Show When Trump Becomes President?

Recent rumors suggest that Elon Musk might be the one running the show if Donald…

28 mins ago

US Stock Market Today: S&P 500, Dow Jones, Nasdaq climb

US stock market is entering 'Santa Claus Rally' as Wall Street's indexes S&P 500, Dow…

50 mins ago

Who Is Aaron Rodgers’ New Girlfriend? American Football Star Reveals Romantic Update

Aaron Rodgers, New York Jets quarterback, revealed his new girlfriend, Brittani, during The Pat McAfee…

53 mins ago