Normal trading will also be shut on Thursday, November 4. Instead, exchanges will hold a short ceremonial Muhurat trading in the evening at 6.15 pm.
Meanwhile, the market has turned volatile ahead of the Federal Reserve policy meeting outcome. The committee is set to announce its decision on Wednesday, which traders will keep in mind ahead of the Muhurat trading.
Many expect the Fed will begin to unwind its $120 billion in monthly bond purchases and end the program entirely by the middle of next year. The quantum of monthly bond purchases is expected to be at a rate of $15 billion a month for hereon.
“Fed Chairman Jerome Powell’s comments will be closely watched for any adjustment in his thinking on inflation which shall drive interest rate expectations. Worries over inflation have prompted traders to bring forward their expectations around the timing and pace of the Fed interest rate increases,” said Heena Naik, Research Analyst – Currency, Angel One.
“Apparently, traders are pricing in as many as three interest rate hikes next year, but in the latest Fed forecast, only half of central bank officials agreed there should be even one.”
