Moody's Chief Economist Mark Zandi Warns Fed Faces High Bar To Avoid Rate Cuts As Weak Jobs Trump Inflation Risks Ahead Of CPI Report
Indian stock markets are expected to respond to the US Federal Reserve's likely 25 basis points rate cut and domestic Wholesale Price Index inflation data, influencing investor sentiment and trade talks.
- Analysts say the key drivers this week are the US Fed meeting and WPI inflation readings, with the US Federal Open Market Committee meeting on September 16 and 17 influencing Indian stock markets.
- Rising US inflation and weak jobs data have pushed markets to price in cuts, with US consumer price index at 2.9% in August and signs of US labour market slowing.
- On the technical front, analysts note the Nifty tested 25,150, with upside targets in the 25,250–25,500 range and the 100-DEMA around 24,650 as support; Foreign Institutional Investors were net buyers in two sessions, including Rs 129.58 crore inflows on Friday.
- Analysts expect a 25 bps Fed cut, with Ipek Ozkardeskaya noting `Two more cuts are already fully priced in before year-end` and markets pricing two or three rate cuts in 2025.
- Broader optimism around GST-led consumption and Fed easing expectations underpins the positive outlook, with Siddhartha Khemka noting GST rate cuts from September 22, 2025, and US-India trade negotiations as key domestic catalysts.
13 Articles
13 Articles
Rising inflation and deteriorating job market puts the Fed and Americans in difficult spot
Inflation rose last month as the price of gas, groceries, and airfares jumped, while a measure of layoffs also increased, putting the Federal Reserve in a tough spot as it prepares to cut rates at its meeting next week despite…
US Fed interest rate decision key driver for stock markets: Analysts
New Delhi: Equity markets will keenly track outcome of the US Federal Reserve policy meeting this week amid heightened expectations of an interest rate cut along with WPI inflation data, analysts said. Any further development on the US–India trade front would also drive trends in the equity market, experts said. “Looking ahead, the key global event this week will be the US FOMC (Federal Open Market Committee) meeting outcome on September 17. Mar…
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