- U.S. inflation rose less than expected, signaling that inflationary pressures are easing.
- US fire can add more to low inflations.
- This raises expectations that the Fed will focus toward rate cuts in 2025.
- *Impact on Indian Share Markets:*
Lower U.S. rates make emerging markets, like India, more attractive for foreign institutional investors (FIIs) due to better yield opportunities.
This supports the inflow of foreign capital into Indian equities.
*But, There is a risk* if upcoming economic data contradicts current inflation trends, expectations of rate cuts could reverse, potentially impacting sentiment.
