MARKET LIVE: SGX Nifty signals positive start post Fed rate hike, up 100pts

0
4


Positive global cues are likely to cheer the Indian equity on Thursday, June 16. As of 07:10 AM, the SGX futures quoted at 15,800, indicating a gap-up of 100 points on the 50. The raised interest rates by 75 basis points (bps), the highest seen since 1994 and signalled to continue its path towards hawkish stance, in order to abate inflationary pressures. With this, the Federal Reserve’s benchmark federal funds rate will increase in the range of 1.5 per cent to 1.75 per cent. 

That apart, the US Fed may hike rates by 50 bps or a similar 75 bps in July and sees policy rate around 3.4 per cent by year end, as against the earlier projection of 1.9 per cent. The Fed also added that a 75 bps rate hike may not be the norm beyond July.

The US equity welcomed the hawkish stance and closed higher in trade on Wednesday. NASDAQ Composite gained the most – as it surged over 2 per cent, while Dow Jones and the S&P 500 edged above 1 per cent, each.

Asia-Pacific markets, too, followed the footsteps and edged higher in Thursday’s morning trade. Japan’s Nikkei 225 rose nearly 2 per cent, whereas, South Korea’s Kospi was up 1.6 per cent.

On the domestic front, will be in focus after Viacom18 eyes expansion after it bagged media rights for the Indian Premier League. Besides that, State Bank of India raised its MCLR lending rate by 20 bps.

Globally, investors will track Bank of England’s interest rate decision, US jobless claims data, as well as Chinese industrial production data on Thursday, June 16.






Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here