The US Federal reserve will make its next rate decision on December 11th.

Most analysts feel a 25 basis point (0.25%) cut is certain. 50 basis point cut would be a bonus.

Do you feel the rate cut will bring in enough inflows to India to take the Sensex to new highs?

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Dear Alchemist,

The impact will definitely be positive not even in US only but all over the world. Even the news that US Fed rates can be revised downwards makes the US markets to move upwards.

But, their is another possibility. As the Financial year end is approaching in US. The funds there may be happy to sit over the cash and put the same in market only in new year.

Any more comments.

Yes surely Fed rate cut will bring extra cash to India, China is already overweight, and India is attractive so we will see sensex moving to new high early next year.

yes.. i think FED rate cut is certain and Indian market will get the bonus of that..But i think not like the earlier rally..
regards

Even though FED rate cut, will move up the market, it wont be immediate.
It would be only in mid January 2008, you will find actual inflows start coming.

Whats say? Alchemist