Fed decision .....

As everyone knew by now, quarter point cut in interest rate happened yesterday. What does it mean to Indian market. Let us do some simple analysis.

NSE broke new highs with the banks in the BSE were leading yesterday. Two possibilities could happen

1. Easy to borrow money from US and pump it into India and this drives the market up as it did few months back.
2. US market was expecting 50 points cut but fall down on the 25 points cut. Indian market might reflect the same.

Do I get into new position now? Not really. I would like to wait in the sidelines for the market to settle for next few days before I pull the trigger on any new position. Also I will be carefully watching my existing position.

More posts to follow later.

Mahadevan.L