A slowdown in FII selling will be a big relief for the Indian market, said Nepean Capital’s Gautam Trivedi on Wednesday. Trivedi adds that a 50 basis points (bps) rate hike by the US Federal Reserve will also be a big relief for global equity markets.

“Slowdown in FII selling will be a big relief for the Indian market; if the US Fed hikes rates by 50 bps it will be a big relief for global equity markets; with every Fed rate hike, other central banks will also have to hike rates,” Trivedi told CNBC-TV18.

He said, “The first few sets of rate hikes have had virtually no impact. What has helped, to some extent, of course, has been the reduction in commodities over the last 6-8 weeks, which has been a big surprise, but the fact is, that has happened. So, if the Fed does indeed do 50 basis points, I think you will see another leg up in the markets.”

Also Read: Nifty50 reclaims 16,300 mark as market extends winning run to third day

Trivedi’s comments align with the sentiment on the Street as domestic equity indices posted strong gains with the broader Nifty 50 index surpassing 16,500 points. The frontline NSE index has surged 8 percent in a month.

Market expert Jai Bala of Cashthechaos.com also said, “As long as the Nifty stays about 16,050, that is a good pullback point and no short-term traders can find entries on the long side with a stop below 16,050.”

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