The US Federal Reserve is set to adopt a 'cut-and-pause' strategy in 2025, aiming to balance economic growth with inflation control [db628337]. Experts predict that the Fed will implement fewer rate cuts than previously anticipated, reflecting a cautious approach to monetary policy [db628337]. This decision comes amidst rising oil prices, which have surged by 6% over the past five days, driven by EU sanctions on Russia and Iran, alongside expectations of US Fed rate cuts [db628337].
In the Indian stock market, shares of major companies have shown significant movement. Bharti Airtel's shares rose by 4.39% to ₹1,681.95, while Kotak Mahindra Bank's shares increased by 2.06% to ₹1,806.15 [db628337]. Hindustan Unilever and Ultratech Cement also saw gains, with their shares up by 1.92% to ₹2,389.45 and 1.87% to ₹12,092.90, respectively [db628337]. Conversely, Tata Steel shares fell by 1.26%, and Vedanta shares decreased by 0.44% [db628337]. Indian Oil Corporation shares rose by 1.91%, and Reliance Industries' shares increased by 0.75% to ₹1,273.35 [db628337].
The Indian economy continues to navigate the complexities of global economic shifts, with the Reserve Bank of India (RBI) closely monitoring the impact of international developments on domestic inflation and growth [6a613632]. The RBI's recent Financial Stability Report highlighted the risks posed by geopolitical tensions and global trade slowdowns, emphasizing the importance of maintaining financial stability [d67cde7d]. As the RBI prepares for future monetary policy adjustments, the interplay between domestic and global economic factors remains crucial for sustaining growth in India [6a613632].
The re-rating of Public Sector Undertakings (PSUs) in India reflects a broader narrative of economic transformation, with PSU stocks outperforming the market significantly [abaaa4ad]. This trend is indicative of the operational efficiency and strategic clarity being adopted by these entities, particularly in the banking and energy sectors [abaaa4ad]. The stability of the rupee amidst fluctuating oil prices showcases the effectiveness of coordinated fiscal and monetary responses, guiding the economy towards a low inflationary regime [abaaa4ad].
As the global economy evolves, the Indian corporate sector is expected to demonstrate resilience and adaptability, with key sectors such as banking, manufacturing, and real estate poised for growth [24904a90]. The anticipated strong performance from PSU banks is expected to contribute positively to the overall economic landscape [24904a90].