The Federal Reserve has slashed its benchmark interest rate by 75 basis points.
US markets closed on a strong note after stronger-than-expected earnings Reported by Lehman and Goldman Sachs. Fed’s decision to cut its main lending rate by 75 bps provided further ammunition to the bulls.
Asian markets trading firm this morning, Indian markets are well poised for a gap-up opening. However, this latest policy action by Fed may just prove to be a short term relief for the markets as the bigger issue still persists i.e. lack of liquidity across global markets.
Having said so, the Sensex has lost around 6,000 points in two months. And, plenty of heavyweight stocks are available at discount, which could provide good long term opportunity at current levels.
