Benchmark indices in the US and India have reached fresh 1-year highs ahead of the outcome of the US Federal Reserve meeting. Data released on inflation indicates the country experienced the smallest increase in inflation in more than two years in May, leading to increased confidence in the potential for a rate hike pause by the Fed. While a Fed rate action is not expected to strongly influence the market, forecasts for interest rates in the coming months will be key. The rate tightening cycle may not yet have concluded, following recent hikes in Australia and Canada.
