By Admin 
Stock market today: The direct impact of the reduction of 0.25 percent in interest rates by US central bank US Fed is visible on the Indian domestic stock market. As soon as the market opened on the fourth trading day of the week, a tremendous rise was recorded. The BSE Sensex opened with a gain of 400 points at 83,108 and climbed to 83,141 in early trade. At the same time, NSE Nifty 50 is also trading up a gain of 100 points with a gain of 100 points.
The Indian stock market was strengthened on Thursday’s trading day. The Nifty 50 was Tech Mahindra, TCS, ICICI Bank, Bajaj Finserv and Trent Top Gainer, while Bajaj Finance, Hindalco, Apollo Hospital, SBI and SBI Life Insurance were included in the list of Life Insurance Top Loser.
Why the market boom?
Dr. V.K. Vijaykumar said that US Fed Chief Jerome Powell has described the cut of 25 basis points in interest rates as a risk management cut. He says that the main focus of Fed is fully focused on economic activities, unemployment and inflation.
Experts believe that this step of Fed will help reduce investors’ anxiety in the US market as well as increase global liquidity. This has also had a direct impact on Indian investors, which has led to a boom in the domestic market. Cut in interest rates will strengthen the perception of foreign investors (FPI) and can increase the flow of capital in the Indian stock market.
In addition, banking and IT stocks have specially benefited, as improvement in the US market will have a positive impact on the business and income of these sectors. There is an indication for investors that there are opportunities in the Indian market even amidst global economic uncertainties.
Effect on rupee and foreign investment
Experts believe that the cut in interest rates from the Fed will increase the pressure on the dollar index, which can strengthen the Indian rupee. Foreign portfolio investors (FPI) will also be attracted to invest more capital in emerging markets. This is likely to increase the flow of foreign investment in the Indian market.
Softness in interest rates can have a positive effect on banks’ ability and margin. Relieving the US economy will increase the hope of getting new contracts to Indian IT companies. Demand may increase due to cheap debt, which will benefit these sectors. Market experts believe that if the Fed cuts interest rates by the end of this year and twice, the Indian market may remain a long -term fast.
Also read: Government issued notifications regarding GST cut, companies ready, know what will be cheaper from September 22
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