Upgrading the global outlook from Neutral to Positive, Zee Business Managing Editor Anil Singhvi terms the current weakness in the US markets as a temporary setback. The Market Guru is of the view that the earnings of big technology companies along with economic growth will eventually help the US markets surge to new record levels.

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It is a wait and watch situation for both global and domestic markets, he says adding that the US Federal Reserve is to conduct a policy meeting today and the focus will be on Jerome Powell’s statement.

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The chances of the Fed Chair making any aggressive comments — good and bad — are less likely, the Market Guru said. He was of the view that Powell would likely touch upon issues such as high inflation, peaking interest rates, and jobs scenario, which is looking good at this time. He said that the need to taper earlier could ruin the market's mood and sentiments.

The Fed policy decision will not only have an impact on the US markets, it may also affect Indian markets, in addition, there is also a Futures and Options monthly expiry tomorrow, which may also impact the domestic markets, managing editor mentions.

Looking at the earnings of US tech giants, it gives confidence that the US markets won’t tumble much, Singhvi said adding that the markets which were trading at life high levels for the last 4-5 days, are likely to correct ahead of the Fed Reserve policy meeting.

Pointing out the reason why the global outlook is positive, the market guru says, there is a good economic recovery, weakness in the US markets is not beyond expectations, good earnings of the companies and downside risk is very low.