Shillong, July 26: V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, states that market participants worldwide are closely monitoring the comments of US Federal Reserve chief Jerome Powell regarding the disinflation process in the US and the potential direction of interest rates.
It is noted that a 25 basis points rate hike, which the market has already factored in, is unlikely to have a significant impact on the market.
However, if Jerome Powell signals that inflation is getting under control and, as a result, further rate hikes are not required, this could serve as a major catalyst for the markets to rise. Nevertheless, Vijayakumar opines that such an outcome is improbable since the Fed is likely to adopt a cautious approach even if inflation shows signs of coming under control.
IANS stated that while the Indian market is expected to experience range-bound movement, individual stocks may react to corporate results and news developments.
Vijayakumar highlights that the positive sentiments are driven by Tata Motors’ Q1 results, their decision to cancel DVR shares, and the strong performance of L&T, coupled with the news of a share buyback.
As of Wednesday’s morning trade, the BSE Sensex has risen by 430 points, reaching 66,786 points, with L&T witnessing an increase of over 3 per cent and Reliance Industries up by almost 2.50 per cent, leading the market upswing.
