Although investors remained cautious ahead of the release of the US FOMC minutes, the Nifty 50 and Sensex managed to hold onto their morning gains. During afternoon trading, the benchmark Sensex and Nifty 50 saw gains of 0.2–0.3 percent.
Global investors will be able to determine whether Fed policymakers have been more dovish or hawkish in recent months based on the US Federal Reserve's FOMC meeting minutes, which are scheduled for release today. Despite the fact that inflation is still declining, the FOMC meeting minutes from April 30-May 1 may point to a higher-for-longer rate regime from the Fed policymakers.
The FOMC meeting minutes, which will be made public on Wednesday, May 22 at 2:00 PM ET, will help investors make trading decisions in the market as they prepare for the first rate cut to happen in September.
At the end of the day, sensex closed at 74,221, a 0.36 per cent rise. Nifty shuttered at 22,597.
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The US Fed meeting minutes are currently the center of attention because they could provide clues about potential rate cuts or policy easing later this fiscal year.
Despite signs that US inflation is abating, Fed policymakers are still hesitant to lower rates.
Perhaps, and understandably, the Fed is hesitating. Fed Board Governor Michael Barr stated that more proof that the rate of inflation is sustainable is required before the Fed lowers the Fed Funds rate. Barr believes that the Fed should keep up its tight monetary policy for longer in order to reduce inflation.
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