By Ruma Dubey

It was a non-even to begin with. The US Federal Reserve tonight left the interest rates unchanged. This decision was like a given ; in the background of Brexit  and improving economy in USA, no one, at least now in June, had expected the Fed to raise rates. This indication came in at the previous Fed meet itself; in fact June meet for rates was considered to be a “formality” and all eyes were set for the meet of September.

So tonight when there was no action, analysts are looking and reading in between the lines – they all need to make something of this non- event!  Their verdict after the meet – one set saying that rates could be raised in September and there is another set which says that indications could be given in September but rates could be hiked only in December. Thus the debate now rages on and the Fed did what it was expected to do – nothing!

A quick look at what the Fed then put in its Press Release:

To maintain the target range for the federal funds rate at 1/4 to 1/2 percent.

The stance of monetary policy remains accommodative, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation.

The Committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate.

The federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run.

The actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.

Near-term risks to the economic outlook have diminished.

Inflation is expected to remain low in the near term, in part because of earlier declines in energy prices, but to rise to 2 percent over the medium term.

The Committee seeks to foster maximum employment and price stability.

Clearly, this news will be brushed off by the markets in the morning without even a glance. The moods will be good as the Union Cabinet cleared the GST amendment Bill and it is expected to be cleared by the Rajya Sabha – it is be put for voting next week.  The green light has been given by the Cabinet for scrapping the 1% tax on interstate supply of goods, expected to benefit states of Gujarat, Tamil Nadu and Maharashtra. Thus this is the news which will steal all the limelight. Logistic stocks are expected to see all the action.

At the same time, result-oriented stocks will also get attention and prominent companies to declare their performance today are….Dish TV, Ceat, Bluedart, Eicher Motors, Escorts, Glaxo, HCC, GSFC, Hexaware, Novartis, Muthoot Finance, ZF Steering and many more.