- Sensex and Nifty rise for the second consecutive session.
- Gains driven by IT, telecom, power, and healthcare sectors.
- Global market outlook remains cautious with US inflation data and Fed rate cut expectations.
The Sensex and Nifty experienced positive momentum, climbing 362 and 105 points respectively, driven by strength in key sectors such as IT, telecom, and healthcare.
Despite the Indian market’s gains, global economic uncertainties persist. US markets are bracing for critical inflation data and Federal Reserve decisions, while recession fears and geopolitical risks add to the caution.
US Economic Uncertainty Impacts Global Market Sentiments
In the US, the 10-year Treasury yield remained steady at its lowest level since June 2023, amid a lack of market-moving data. Traders are focused on upcoming events, including a presidential debate and consumer-price index data for August. This cautious approach reflects broader market uncertainties as investors await clearer signals on inflation and economic policy.
Mizuho’s recent note underscores the potential risk for investors who anticipate significant Federal Reserve rate cuts. The note suggests that the market’s expectations might be overly optimistic, given the Fed’s historical approach to rate adjustments. This cautious stance is crucial as global economic conditions continue to evolve, with falling crude oil prices and political risks adding to market volatility.
As global markets navigate uncertainties and economic indicators, both Indian and US markets reflect broader caution. Investors should remain attentive to upcoming data and geopolitical developments that could impact market dynamics.
“Markets have been conditioned by the Fed’s aggressive rate reductions in each of the past four business cycles and the 2018-2019 repo debacle,
