In a surprising move, the US Federal Reserve shifted from a hawkish to a dovish stance, prompting a global stock market surge. However, bond yields indicate skepticism, hinting at rising inflation. The divergence raises concerns for Indian investors, as higher US interest rates could trigger FII outflows and impact stock valuations. Sectors with US market exposure, like IT and pharmaceuticals, could face challenges. Indian investors should closely monitor US inflation indicators for potential market shifts.
The Fed Pivot and Its Ripple Effects on Global Markets
![](https://affairsace-media.s3.ap-south-1.amazonaws.com/2024/04/04095548/newindianexpress_2024-04_bfeee602-cc4a-4599-ac26-11490244429b_stock-ezgif.com-avif-to-jpg-converter-860x596.jpg)