Analysts see correction as a trend reversal that could last a while
Christina Parajon Skinner, an assistant professor at the Wharton School and former legal counsel at the Bank of England, probe the question.
The central bank is increasingly shifting its forex intervention to the forwards market to keep from injecting rupee liquidity, according to analysts.
Many expect the Sensex to go past 60,000 and the Nifty to top 18,000 in the next few sessions
"The failure to do that is something that could result in severe damage to the economy and to financial markets and it's just not something we should contemplate," he said
The sentiment remained robust in the broader markets too as the BSE Midcap touched new high in intra-day session and ended 1.31 per cent higher
Stock market LIVE: Sectorally, all indices were trading positively, led by Nifty Realty
(Reuters) -Half of U.S. Federal Reserve policymakers now expect to start raising interest rates next year and think borrowing costs should increase to at least 1% by the end of 2023, reflecting a growing consensus that gradually tighter policy will be needed to keep inflation in check.
US stocks pared gains, while yields on 10-year Treasuries pushed higher
Dow Jones Industrial Average rose 341.11 points, or 1.01%, to 34,260.95, the S&P 500 gained 41.54 points, or 0.95%, to 4,395.73
A Wells Fargo spokeswoman did not immediately respond to a request for comment
US stocks rose slightly, while yields on 10-year Treasuries maintained an earlier decline; the dollar remained lower after the decision
The dollar index stood at 93.226 in early Asian trade, staying not far off Monday's one-month high of 93.455.
The news also helped the risk-sensitive Australian dollar, though anticipation that the Federal Reserve may move a step closer to tapering later on Wednesday kept a lid on gains and the mood
Spot gold fell 0.1% to $1,762.08 per ounce by 0340 GMT.
Sensex posts biggest drop in two months amid global selloff
The pan-European STOXX 600 index was down 1.4% by 0706 GMT, with energy and mining stocks leading declines on a slide in commodities prices
Wall Street's main indexes have been hurt this month by fears of potentially higher corporate tax rates denting earnings and have shrugged off signs inflation might have peaked
"With weak US job data and inflation increasing at a slower pace, Fed is not expected to hint on taper plans in the upcoming meeting, says an analyst
US Federal Reserve will probably hint at its meeting next week that it is moving toward announcing a reduction in monthly asset purchases in November, according to a Bloomberg survey of economists.