Markets are likely to trade rangebound next week

Dalal Street saw its worst week in over 2 years with Nifty & the Sensex down over 4%, the biggest weekly fall since June of 2022.

With this, the BSE-listed companies have wiped out nearly Rs 20 lakh crore in investor wealth.

From the start of the week, the market followed a downtrend trajectory, with benchmark indices closing at lower levels compared to the previous day's closing, driven by concerns over sustained selling pressure from the Foreign Institutional Investors (FIIs) and anticipation surrounding the US Federal Reserve's key policy announcement.

Coming to the actual outcome, Fed Chair Jerome Powell delivered what the street was expecting: a 25 bps rate cut, bringing it to the range of 4.25-4.50%, but the commentary by him turned out to be hawkish.

The Fed now projects just two rate cuts next year as compared to four previously expected.

The fewer rate cuts in the coming year spooked the global markets including India.