By Admin 
Indian Stock Market: Taking a policy decision, the US central bank has brought the benchmark interest rate from 4 percent to 4.25 percent by cutting the interest rates by 0.25 percent. The Indian market saw a tremendous rise on Thursday, a day after the US Fed’s decision taken on Wednesday.
While the Sensex opened by climbing 400 points, the Nifty was also trading with an initial lead of 100 points. Shares from Infosys to Wipro saw a surge. That is, the shares of IT companies saw tremendous strength and their shares went up to about 2 percent.
Why the Indian market booms?
Why the Indian market boom. Actually, market experts were already expecting that interest rates would be cut this time. Along with this, there are indications of cuts in interest rates further from the US Fed. However, US Fed Chief Jerome Powell has definitely said that further policy decisions will be taken according to the upcoming figures and changing situations.
In this regard, Rajesh Palvania, Senior Vice President of Axis Securities, says that this policy decision of US Fed may attract foreign investors in India. This will not only benefit index like BSE Sensex and NSE Nifty, but Indian currency is also likely to be strengthened.
What should investors do?
What should investors do. In this regard, Japan’s broking firm Nomura says that in the coming days this year, people can be relieved by the US Federal Reserve and by cutting interest rates of 25 basis points. On the other hand, Vishal Goenka, co-founder of India Bonds.com, says that after this decision of the US central bank, the expectation of further interest rates has increased and it can be a favorable situation to invest in bonds.
Also read: Indian rupee collapsed by US Fed’s decision to cut interest rates, know how much broken against the dollar
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