After the Federal Reserve of the United States kept interest rates constant as expected but hinted at the likelihood of more rate rises later this year, the stock market in India is expected to start falling on Thursday.
As of 8:09 a.m. India Standard Time (IST), the NSE stock futures that are traded on the Singapore Exchange had decreased by 0.18% and were trading at 18,801.50.
The Federal Reserve decided to leave interest rates unchanged for the first time in 17 months on Wednesday, which contributed to a higher closing price for stocks on Wall Street. However, the Fed also indicated in its fresh estimates that borrowing costs may still need to increase by as much as half a percentage point by the end of this year.
According to the chair of the Federal Reserve, Jerome Powell, the delay was taken out of an abundance of caution to enable the central bank to determine an appropriate endpoint of the rate cycle to bring down inflation.
Investors are currently anticipating the Bank of Japan’s announcement of policy on Friday and the European Central Bank’s announcement on Thursday.
The changes on the Asian markets were minimal, as negative economic data from China erased early gains after the reduction in crucial medium-term lending rates to stimulate the economy.
On Wednesday, Indian stock prices continued their upward trend for the third session in a row. Both benchmarks were just around one percent off of their all-time highs at the time. The small-cap index reached a new 52-week high, while the midcap index reached a new all-time high as trading came to a close.
Analysts said that the mood in domestic stocks remained optimistic as a result of strengthening macroeconomic data and sustained purchasing by foreign institutional investors (FII), but they also warned that consolidation is expected to persist for the next few weeks.
According to preliminary data provided by the NSE, foreign institutional investors (FIIs) purchased 17.15 billion rupees ($209 million) worth of Indian stocks on a net basis on Wednesday, while domestic investors sold 6.55 billion rupees ($80 million) of shares.
