US Fed rate cut decision: How will it impact Indian stock markets?
India TodayBenchmark stock market indices have been under pressure over the past few sessions, extending losses as global cues remain weak. Palka Arora Chopra, Director at Master Capital Services Ltd., highlighted the global fallout: "The US Federal Reserve's recent 0.25% interest rate cut, accompanied by their indication of a more measured pace of future reductions, has triggered a wave of uncertainty across financial markets. The Dollar Index surged, reflecting the market's reaction to the Fed's hawkish stance.” WHAT IT MEANS FOR INDIAN STOCK MARKETS? Swapnil Aggarwal, Director at VSRK Capital, warned of potential outflows: "This rate cut could make Indian assets less attractive to foreign investors, potentially leading to capital outflows. Justin Khoo, Senior Market Analyst - APAC at VT Markets, explained the potential market dynamics: "US stock markets may see declines, particularly in tech and growth sectors, as higher rates reduce the present value of future earnings.