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Below the Comment on the Fed meeting outcome by Mr Shrey Jain Founder and CEO SAS Online

A deeper than expected cut in policy rate and positive commentary by the US Fed indicate soft landing for the US economy. This should nudge central bankers in emerging markets, including the Reserve Bank of India, to cut rates. We expect only 50 BPS cut in repo rate in India by March 2025. We are positive on short- and medium-term bonds.
Rate cut augurs well for flows into risky assets including Indian equities. Current valuations may make foreign investors go slow on Indian stocks.
 
Market participants are expected to take some profits. Profits should be booked in IT stocks. Nifty 50 index may remain sideways. Fresh longs on Nifty50 can be considered only above today’s high of 25611, for a target of 25850. Stock specific trades on the long side can be considered in select names in FMCG and sugar sector. Metal stocks should be on the traders’ radar, as rate cuts may rejuvenate them. Expect bouts of volatility in the stock market and respect stop loss on trade.

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