Market rides out 'expected' US rate hike, Nifty up 0.2%
Indian stock markets wrapped up the day on a slightly positive note on Thursday, digesting the anticipated hike from the US Federal Reserve. The Nifty index gained traction, while the Sensex slipped marginally. As bond yields eased following the 25-basis-point rise and oil prices corrected, domestic institutions buoyed market performance amidst foreign investor sell-offs. This resilience in…
Mumbai: India's equity markets closed slightly higher on Thursday, despite the United States Federal Reserve's first interest rate hike in three years. The National Stock Exchange's Nifty index rose 53 points, or 0.2%, to reach 23,270.6, while the Bombay Stock Exchange's Sensex declined by 21.86 points, or 0.03%, to end at 74,314.59.
The anticipated interest rate increase by the Fed had minimal impact on the markets, according to Ramesh Mantri, the chief investment officer at WhiteOak Capital AMC. Both US and Indian interest rates had already risen in anticipation of the decision.
Asia's other major markets varied on Thursday. Japan rose by 0.3%, Taiwan increased by 1%, while China and Hong Kong both fell by 0.4%, and South Korea remained unchanged. The Stoxx 600 index in Europe gained 0.5% at the time of publication.
The 25-basis-point rate hike by the Fed contributed to a drop in bond yields. The US 10-year bond yield fell below 5%, after eight consecutive days of increasing, in response to the central bank's move. The 10-year yield had reached the highest level since July 2007, at 5.041%, as high oil prices heightened inflation concerns, leading traders to predict further interest rate hikes.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
