On Wednesday, the U.S. stock market experienced significant losses in volatile trade, following the announcement from the Federal Reserve that interest rates would be raised by another 25 basis points. The policymakers noted that they were not planning any rate cuts this year, despite recent turmoil in the banking industry following the collapse of two U.S. regional banks. The Fed also acknowledged that it may need to raise rates even higher in the future. The central bank also recognized that the banking sector’s instability could further slow down the already fragile economy.
The Summary of Economic Projections released with the rate decision indicated a projected peak rate of 5%-5.25%, the same as projected in December. This suggests only one more rate hike this year.
Meanwhile, U.S. Treasury Secretary Janet Yellen stated at a congressional hearing on Wednesday that she is not considering a broad increase in deposit insurance.
In India, the government plans to sell up to 3.5% stake in aerospace and defense company Hindustan Aeronautics Ltd (HAL) via an offer for sale (OFS), as per an exchange filing on March 22. The stake sale would be valued at Rs 2,867 crore, with the government setting a floor price of Rs 2,450 apiece, at a 6.6% discount from its current share price.
The Asian stock market struggled on Thursday following a slump on Wall Street after Treasury Secretary Janet Yellen affected bank shares, and the Federal Reserve pushed back against bets for interest rate cuts this year.
In India, the Nifty rose for the second consecutive session on March 22, ending at 17151.9, up by 0.26% or 44.4 points, after a range-bound session. The Nifty may rise towards 17422 once the 17255 level is taken out. On falls, 17067 could provide support.