Indian Stock Indices Surge Following Fed’s Monetary Policy Review

Indian Stock Indices Surge

VoM News Desk | March 21, 2024 | 10:57 AM IST | Breaking News | Follow on Google News

Indian Stock Indices Surge Following Fed’s Monetary Policy Review

Indian Stock Indices Surge Following Fed’s Monetary Policy Review

After the US Federal Reserve affirmed its projection of three rate cuts this year, global stocks rallied, propelling Indian stock indices to trade firm on Thursday after the opening bell. At 10:09 am, the Sensex stood at 72,724.62 points, up 622.93 points (0.86%), while the Nifty reached 22,034.05 points, marking a gain of 194.95 points (0.89%). Among the Nifty 50 stocks, 47 advanced, while the rest saw declines.

US Federal Reserve Maintains Interest Rates Amid Economic Optimism

During its March meeting, the US Federal Reserve opted to leave the key interest rate unchanged at 5.25-5.50%. This decision, marking the fifth consecutive time of rate stability, reaffirmed the Fed’s commitment to three interest rate cuts this year, backed by expectations of sustained economic growth. The Fed’s focus remains on achieving its 2% inflation target, with current inflation rates exceeding 3%.

Market Response and Foreign Investor Confidence

Following the Fed’s decision, the market responded positively, with US indices reaching record highs. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the Fed’s stance on inflation and the labor market signals confidence in the US economy’s soft landing and the potential for three rate cuts in 2024.

Meanwhile, foreign portfolio investors have resumed net buying in India, after a period of aggressive selling in January 2024. Their renewed confidence is evident in their continued net purchases in February and March, amounting to Rs 41,668 crore worth of Indian stocks in March alone, as per data from the National Securities Depository Limited (NSDL).

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.