US Fed’s Rate Cut: What it Means for the Indian Stock Market

The US Federal Reserve is expected to cut its benchmark interest rate by 25 basis points for the first time since 2020 due to signs of economic slowdown and lower inflation. While this is generally positive for global markets, Indian experts believe the effect on the Indian stock market may be limited since the cut has already been anticipated. In the past, Indian markets remained strong even during Fed rate hikes. Analysts suggest that only a larger cut, like 50 basis points or more, could significantly boost the market and foreign investment. The focus now shifts to whether the Fed will cut rates further, possibly by 100 basis points this year.



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