On September 18, the US Federal Reserve cut the interest rate by half a percent i.e. 0.50 percent. After this cut, the US stock market saw a rise. According to analysts, the Fed’s decision may also affect the prices of gold. The Fed Reserve’s decisions will also affect the Indian stock market.
After the Kovid epidemic, the US Federal Reserve, the central bank of America, has announced a cut in the interest rate. Yes, on 18 September 2024, the Fed Reserve announced that the interest rate has been cut by 0.50 percent. After the announcement of the interest rate cut (US Federal Rate Cut), there was a boom in the American stock market.
Let us tell you that it is expected that after the Fed’s decision, the price of gold along with the stock may also rise. Analysts had already hoped that the Fed would cut interest rates this time.
The impact of the Fed’s decisions can also be seen on the stock market today. Market experts told which sector’s shares will be in focus in the market today.
Keep an eye on these sectors
According to market experts, the impact of the Fed’s decisions will be seen on the shares of IT and pharma sector. If the rupee strengthens in the foreign exchange market, it may have a negative impact on the exporting company. Due to this, the pressure on IT and pharma shares may increase.
Let us tell you that after the reduction in interest rates in America, loans will become cheaper. This will directly benefit banking and financial companies. Apart from this, companies which have taken more loans will also benefit from the decisions of the Fed. In such a situation, market investors should keep an eye on these sectors.
Keep an eye on the banking sector
After the Fed’s decision, there may be a rise in the shares of the banking sector. Actually, after the reduction in interest rates, there will be a rise in securities i.e. bonds, which will benefit the bank. If the bonds yield rises, the bank will get capital gains, which will affect the income and profit of the bank.
Along with the banking sector, the realty sector can also benefit. Actually, according to market experts, home loans will become cheaper after the reduction in interest rates. After home loans become cheaper, the demand in the realty sector may increase.
RBI can take a decision
It is expected that after the Fed’s decision, the country’s central bank (RBI) can also take a decision. RBI’s bi-monthly monetary review meeting (RBI MPC Meet) will be held from 7 October to 9 October. A decision can be taken regarding the repo rate in this meeting. There has been no change in the repo rate since last February 2023. In such a situation, after the Fed’s decision, it is expected that RBI can also cut the repo rate.