Market experts anticipate selective purchasing activities influenced by quarterly financial reports, whilst overall market sentiment remains dependent on economic indicators and developments in India-US trade negotiations.VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “The technical bounce back in Nifty by 140 points yesterday is unlikely to continue in the unfavourable near-term market scenario. Such bounce backs happen in an oversold market. The major drag on the market continues to be the negative news on the India-US trade front. President Trump’s comment that “ India may have to pay 20-25 % tariff” is very negative from the short-term market perspective. The FOMC decision today is unlikely to impact the market. A rate cut by the Fed is unlikely today. More important would be the Fed commentary on the evolving economic outlook.” “Sustained FII selling in the cash market for the seventh continuous trading day is another headwind for the market. Spike in Brent crude to $ 72 is another negative. Weakness in the market due to these headwinds can be used by long-term investors to slowly accumulate fairly valued high quality stocks.”US markets ended lower on Tuesday with both S&P 500 and Nasdaq retreating from their peak levels following underwhelming corporate results, as investors awaited the Federal Reserve’s policy announcement.Asian stocks displayed uncertain movement ahead of the Fed’s policy decision, with limited impact from modest improvements in US-China trade discussions.Gold prices remained stable on Wednesday as traders remained cautious before the Federal Reserve’s policy announcement later in the day, seeking guidance on future rate reductions, whilst monitoring US trade discussions before the August 1 deadline.Foreign portfolio investors sold shares worth Rs 4,637 crore net on Tuesday. Domestic institutional investors were net purchasers at Rs 6,147 crore.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
