New Delhi: The US Federal Reserve has decided to cut the interest rate (US federal reserve policy rate cut) . The Fed Reserve announced that the interest rate was cut by 0.50 percent.

The reduction in interest rates has affected not only the US but also the Indian stock market. Apart from stocks, gold prices may also rise.

The stock market may rise

This decision of the US Federal Reserve can also strengthen the stocks of sectors like banking, finance, IT, FMCG and pharma.

The strength of rupee may increase

Due to the reduction in interest rates, the yield of treasury securities will decrease, due to which investors will turn to the Indian market for better options. If investors invest in India, the flow of foreign capital in the country will increase, which will lead to a boom in the Indian stock market.

The rise in the stock market means that Indian investors will benefit. Foreign investors will convert their currency into rupees to invest in the country. This will increase the value of the rupee and it may strengthen against the dollar. Let us tell you that today (Tuesday) the rupee has opened 6 paise higher against the dollar.

All eyes will be on RBI

After this decision taken by the US Federal Reserve, now the eyes of the countrymen are on RBI . Indian monetary policy has always been influenced by US rates.

However, a few days ago, RBI Governor Shaktikanta Das had said that it is not necessary that RBI should also change its interest rate after the decision taken by the US Federal Reserve.

Now investors' eyes are on the RBI MPC meeting to be held in October. Investors hope that this time there may be a change in the repo rate. The MPC meeting will be held from October 7 to October 9.