The markets seem to be undecided on a bias, thanks to the US cutting its quantitative easing programme by another $10 billion to $65 billion.
It was just last month that the US Fed had announced a taper of $10 billion from the $85-billion stimulus.
Indian stock market's benchmark index, that is Sensex, is trading at 20,531.59, up 33.34 points.
Yesterday, the Sensex lost more than 280 points in intraday trade, but pared losses in late trade, ending the day with a loss of 149 points.
Here are five reasons why the Indian stock market is not reacting much to QE tapering:
Rupee factor
A large part of the bearishness seen on Indian stock markets last year was attributed to the rupee fall.
The rupee had hit near 69 levels in late August on account of fears that the US would start to taper its $85 billion stimulus.
Experts see the rupee not having any big impact this time around in the face of the QE cut announced late on Wednesday.
"The rupee will weaken on both domestic and external factors; but only gradually. This is because RBI has made some moves and that should actually sort of provide a cushion for the INR. I see the currency stabilising at about 64 for now," Nizam Idris, Managing Director and Head of Strategy, Fixed Income and Currencies, Macquarie, tells ET Now. Read more..
It was just last month that the US Fed had announced a taper of $10 billion from the $85-billion stimulus.
Indian stock market's benchmark index, that is Sensex, is trading at 20,531.59, up 33.34 points.
Yesterday, the Sensex lost more than 280 points in intraday trade, but pared losses in late trade, ending the day with a loss of 149 points.
Here are five reasons why the Indian stock market is not reacting much to QE tapering:
Rupee factor
A large part of the bearishness seen on Indian stock markets last year was attributed to the rupee fall.
The rupee had hit near 69 levels in late August on account of fears that the US would start to taper its $85 billion stimulus.
Experts see the rupee not having any big impact this time around in the face of the QE cut announced late on Wednesday.
"The rupee will weaken on both domestic and external factors; but only gradually. This is because RBI has made some moves and that should actually sort of provide a cushion for the INR. I see the currency stabilising at about 64 for now," Nizam Idris, Managing Director and Head of Strategy, Fixed Income and Currencies, Macquarie, tells ET Now. Read more..
Source: News in Hindi
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