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Below the Quote on US Fed Rate cut by Rakesh Pujara, smallcase Manager and Founder at Compounding Wealth Advisors LLP

“The US Fed has cut rates for two straight meetings as the inflation print has been comfortable. The Fed has acted as per the incoming data, and guided the market that the future actions and December meeting outcome will depend on incoming data, labor market.

Back home, the RBI will be meeting next month to unveil their monetary policy meeting. While the central bank has committed to support the economy, the retail inflation saw an uptick. Extended monsoon's impact on crop and supply side constraints has led to an negative impact on inflation. We expect the central bank to act on economic data and high frequency indicators. They are likely to maintain status quo in December, with chances of a rate cut on Q1CY25.

Expect Indian market to trade sideways till clarity emerges on corporate earnings, pick up in consumption and FII flows.”

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