After opening the day on a firm note, share markets in India witnessed volatile trades and are presently trading marginally higher. Sectoral indices are trading on a mixed note with stocks in the telecom sector and energy sector witnessing maximum buying interest. IT stocks are trading in the red.
The BSE Sensex is trading up 9 points (up 0.03%) and the NSE Nifty is trading up 6 points (up 0.1%). The BSE Mid Cap index is trading up by 0.7%, while the BSE Small Cap index is trading up by 0.6%. The rupee is trading at 65.47 to the US$.
Indian stock markets are witnessing volatility today ahead of the Fed's decision regarding interest rate. Many market participants are of the view that the Fed will increase its interest rates this time. Also, some of the most recent data from the US has fueled optimism for an interest rate hike by the Fed.
Fed Chair Janet Yellen last week signaled that the US central bank would likely raise rates at its March 14-15 policy meeting. It raised interest rates in December 2016 and has forecast three rate hikes for 2017.
The Fed's promise of more interest rate increases would lead to the end of easy money and create big trends that traders can profit from.
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In other news, data released yesterday showed India's wholesale price index (WPI) inflation rising 6.55% in February. This was seen on the back of higher fuel, power, and food prices. Fuel and power inflation rose 21.02% in February from 18.14% last month. Food inflation firmed up to 2.69% in February from a 0.56% fall in January.
Along with the WPI, the month of February also saw retail inflation going up by 3.65%.
The above developments dimmed the prospects of an interest rate hike by the Reserve Bank of India (RBI) next month and has also raised concerns about economy growth.
There are many causes of inflation in India and one can say that the inflation in India is here to stay. The real question comes as what can be the best bet to protect your wealth from these inflationary pressures?
One of our editions of The 5 Minute WrapUp answers the above questions by explaining how buying solid stocks can help in beating inflation.
For information on how to pick stocks that have the potential to deliver big returns, download our special report now!
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