Mkts likely to stay range-bound; India-US trade deal eyed

It was a big week for the markets as the Fed decision outcome is now out of the way with 25bps cut but what's next is the big question because 25bps rate cut was expected and it was already priced in but there is some debate about how many more ahead and more importantly how many more ahead in 2026 because the dot plot shows only one rate cut. The rate cut announced is likely to infuse money from the Foreign Institutional Investors (FIIs) in the Indian Market.

- Motilal Oswal Team

Another interesting part is that in the month of September, the Indian equity markets have been a relative outperformer which hasn't been the case for a long time. This is something we highlighted in our earlier communication as well that our markets should do well because despite the tariff announcement, the world market traded at higher levels and it was only the Indian Market that witnessed underperformance. Historical data also suggested Indian Markets more or less move parallelly with global markets and thus Indian Markets to follow the suit.