Indian stocks positive on FED’s rate cut; oil and gold steady

The Indian market showed a slight positive trend, fueled by expectations of a rate cut cycle from the US Federal Reserve.

While a 25-basis point cut is mostly anticipated, the market is closely watching the Fed's remarks on economic health and future rate cut plans.

Additionally, strong institutional investments continued to support the domestic market. Overall, the trend was positive, with significant buying interest in large-cap stocks, especially in the IT, FMCG, and private banking sectors.

India’s BSE 100 Index gained 0.06% or 16.13 points to close at 26,912.09 points.

The Dubai Financial Market (DFM) General Index closed flat at 4,395.20 points.

Pakistan stocks were closed on Tuesday on account of birth anniversary of Prophet Muhammad (PBUH).

Commodities

Crude improved on Tuesday. Hurricane Francine last week forced the shut-in of offshore oil rigs in the Gulf of Mexico. Concerns remain on the demand front, however, after lackluster economic data and oil consumption figures from China over the weekend.

Investors are also awaiting a Wednesday decision by the Federal Reserve, with fed-funds-futures traders pricing in a roughly 65% probability that policymakers will opt to cut the central bank’s key rate by 50 basis points, or half a percentage point, rather than 25 basis points, or a quarter percentage point.

Brent crude prices surged 0.74% to $73.29 per barrel.

Gold eased on Tuesday. Year to date, gold is up nearly 26% — outpacing the S & P 500′s 18% gain. That advance also puts the commodity on pace for its biggest annual increase since 2010, when it surged nearly 30%, FactSet data shows.

That strong performance comes as investors widely anticipate the Federal Reserve will start cutting interest rates Wednesday, and with inflation easing from the high levels seen just two years ago.

International gold prices eased 2.8% to $2,576.66/ounce.