candidate Narendra Modi coming to power has already been priced into the markets. With US Fed further slowing down its pace of bond purchases, FII flows could dry up,” said UR Bhat, managing director, Dalton Capital Advisors. “The reward-risk balance for the Indian stock market is less favourable after the sharp run-up in prices of several domestic cyclical and PSU stocks in the past two weeks,” Kotak Institutional Securities added in a report.
On Wednesday, the US Fed decided to further slash its monthly bond-buying to $55 billion. The members of the Federal Open Market Committe (FOMC) on Wednesday said economic activity in the US slowed during the winter months, in part reflecting adverse weather conditions. However, labour market indicators on balance showed further improvement.