Reliance, L&T lead Sensex surge

New Delhi, July 26 Globally market participants will be closely watching US Federal Reserve chief Jerome Powell’s comments about the disinflation process in the US and the likely trend in interest rate, says V.K, Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

A 25 bp rate hike, already discounted by the market, will not trigger any market move.

But if the Fed chief indicates that inflation is coming under control and, therefore, no further rate hikes are needed, that will be a big trigger for markets to move up. But such an outcome is highly unlikely since the Fed will play it safe even if inflation is coming under control, he added.

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