How Indian Stock Market Reacted Ahead of US Fed Rate Meeting?

According to reports, the US Federal Reserve is expected to reduce its benchmark interest rate by 25 basis points at the conclusion of its 2-day meeting on December 18. This would mark the 3 consecutive US Fed rate cut, bringing the federal funds rate to a target range of 4.25%-4.5%, down from the current 4.5%-4.75%.

The decision is widely anticipated, with markets pricing in a rate reduction, as reflected in a 99% probability indicated by CME Group’s FedWatch tool. Strong employment data for December and last week’s inflation figures have further bolstered expectations for continued easing.

Fed Chair Jerome Powell is scheduled to release the policy statement at 2:00 PM. ET on Wednesday (December 18), which will be 12:30 AM IST on Thursday (December 19). This will be followed by a press conference at 2:30 PM. ET.

Indian Stock Market Reaction Ahead of US Fed Rate Decision

The Indian stock market opened flat on Wednesday as investors await the US Federal Reserve’s interest rate decision.

As of 9:33 AM, the Sensex was trading at 80,651.44, down by 33.01 points (0.04%), while the Nifty was at 24,328.75, a decline of 7.25 points (0.03%).

The market sentiment remained negative. On the National Stock Exchange (NSE), 882 stocks were in the green, while 1,306 stocks were in the red.

Global market attention is focused on the Fed’s decision, with a 25-basis point rate cut already priced in.

The Nifty Bank index was down by 152.85 points (0.29%), at 52,681.95. The Nifty Midcap 100 index dropped 201.35 points (0.34%), trading at 58,900.55. Meanwhile, the Nifty Smallcap 100 index was at 19,346.40, down by 52.05 points (0.27%).

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.