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Indian Markets Cautious: Hawkish Fed, Global Cues Impact

By SivamIndian Markets Cautious: Hawkish Fed, Global Cues Impact

Indian markets brace for a cautious start, influenced by the US Federal Reserve’s hawkish pause and global economic signals. FIIs show renewed buying interest.

Markets Brace for Cautious Open

Indian equity markets are poised for a cautious start on Thursday, influenced by negative cues from Wall Street overnight. This follows a hawkish pause by the US Federal Reserve, which kept interest rates unchanged but signaled potential future hikes.

Despite the global headwinds, foreign institutional investors (FIIs) turned net buyers on Wednesday, purchasing equities worth Rs 101.59 crore.

Global Economic Picture

  • The US Federal Reserve unanimously voted to keep interest rates unchanged at its June FOMC meeting.
  • However, officials forecasted at least one possible rate hike ahead, leading US markets to close mostly in the red.
  • US retail sales increased 0.9% month-over-month in May 2026, surpassing forecasts of 0.5%.
  • This data from the Commerce Department indicates robust consumer spending, with gasoline station sales rising 3.4%.

Trade Deal Outlook

A significant development on the trade front indicates that India and the European Union are set to sign an ambitious free trade agreement by the end of this year. This resolution was reached on the sidelines of the G7 summit.

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