The market perception was excited by the hope that the Federal Open Market Committee (FOMC) would maintain its current interest rate. Banking and market expert Ajay Bagga commented, “In a huge week of the central bank policy, where 10 central banks are announcing the decision of interest rate, the risky assets will keep a close watch on the US Fed. This week FOMC is 99% likely to 'hold' fad futures'.
He further said, “Banks of Japan and Bank of England are also expected to keep their policy on hold at the moment. American markets were rapid on the second day due to better retail sales data from America. Asian markets are moving forward in most major Asian markets this morning. FPI cash sales figures in Indian markets increased rapidly, but the strong DII figures were successful on Monday.”
The global markets were positive, the US markets gained momentum for the second consecutive day, which got the support of better retail sales figures than expected. Asian markets also did the same, most of the major indices accelerated on Tuesday morning. Despite the foreign portfolio investors (FPIs) entering significant cash sales, the Indian markets managed to shut down in green due to strong domestic institutional investors (DII) activity on Monday. However, Bagga warned of potential instability after the FOMC meeting.
“We expect something selling on Wednesday after the FOMC meeting as Fed Futures are showing that the markets are underestimating the interest rate cuts three times in 2025. Any aggressive Fed on this front can cause a slight selling in markets in the US on Wednesday,” he said. Investors will closely monitor the policy decisions of the Federal Reserve and the subsequent comments, which may affect market activities in the coming days
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