Global markets are currently facing ongoing bearish pressure as a result of the Federal Reserve’s hawkish stance. This has triggered a decline in global equities and a surge in the value of the US dollar. While India’s recent inclusion in the JPMorgan Government Bond Index offers some optimism, short-term equity market pressure persists due to foreign portfolio investor selling and the strong US dollar.

The Federal Reserve Chair, Jerome Powell’s hawkish outlook has reverberated across global markets, leading to a decline in equity markets worldwide. Investors are concerned about the potential impact of a tighter monetary policy in the US, which could result in higher interest rates and reduced liquidity. This has prompted a sell-off in equities and a flight to safe-haven assets.

India’s inclusion in the JPMorgan Government Bond Index is seen as a positive development for the country’s bond market. It is expected to attract significant foreign investment and provide a boost to the Indian economy. However, in the short term, the Indian equity market is facing pressure from foreign portfolio investor selling, as global investors realign their portfolios in response to the changing global market dynamics.

Another factor contributing to the short-term equity market pressure is the strength of the US dollar. The dollar has been gaining strength against major currencies, including the Indian rupee. A stronger dollar makes Indian equities relatively less attractive for foreign investors and can lead to selling pressure.

Overall, while India’s inclusion in the JPMorgan Government Bond Index offers optimism for the future, the short-term equity market is still facing pressure from foreign portfolio investor selling and a strong US dollar. Investors will be closely watching the Federal Reserve’s next moves and the potential impact on global markets.