New Delhi, Sept. 30 -- Despite mixed signals following the US Federal Reserve's 25-basis-point rate cut on 17 September, markets are pricing in the possibility of two more cuts this year-amounting to a total of 50 basis points-which is expected to bode well for emerging markets such as India.

In a press conference after the September policy meeting, Fed Chair Jerome Powell flagged that the job market was cooling. He, however, emphasised that sticky inflation remains a key risk and the central bank has the tough task of balancing the evolving, complex situation.

Despite Powell's cautious tone, a large section of the market expects the Fed to cut rates in October and December.

According to Reuters, the CME FedWatch Tool suggests the mark...