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"The FOMC meet has sent out mixed signals. The decision to keep rates unchanged at 0 to 0.25 levels, maintain asset purchases at $120 a month and declaration that monetary policy will continue to give powerful support to growth are supportive for markets. But Fed's language is mildly hawkish since there are indications of bringing the rate hikes forward. Fed chief's remark that " inflation can be more persistent than we thought" is a signal that the Fed will be serious about tackling inflation by withdrawing accommodation at the right time. The rise in US 10-year bond yield by 10 bp to 1.58% and the Dollar index moving up to 91.50 are negatives for emerging markets like India. However, it is important to note that the Fed has raised the 2021 US GDP forecast to 7% from 6.5% earlier. This means higher EPS growth and better prospects for equities. Back home in India, Covid data continues to improve and reopenings are gathering momentum favouring unlock trades. Some correction in the market now is desirable since it would make the market healthy"