{
  "id": 7928165,
  "title": "Domestic market to open on flat to negative note as US Fed talks hawkish",
  "url": "https://urgent.news/2026/09/17/domestic-market-to-open-on-flat-to-negative-note-as-us-fed-talks",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-17T02:05:28.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/domestic-market-to-open-on-flat-to-negative-note-as-us-fed-talks-hawkish/article71475146.ece"
  },
  "original_language": "en",
  "account": "India's domestic market opened on a flat to negative note on Thursday, as investors digested mixed global cues. The Sensex, known as the GIFT Nifty, was trading near 23,220, indicating a gap down opening of approximately 50-60 points. Analyst Hariselvan Radhakrishnan of HST Wealth explained that while a pullback in Brent crude oil prices to around $104.7 a barrel from its recent high offered some relief, the Federal Reserve's decision to raise interest rates and hint at further tightening could keep markets volatile, limiting any immediate recovery. The Fed increased its policy rate by 25 basis points to 3.75% - 4%, its first hike in three years, and forecasted additional rate hikes throughout the year. Wall Street experienced a decline in its markets, while the US 10-year Treasury yield hovered near 5%, signaling concerns that borrowing costs might remain high for an extended period. Higher US interest rates could strengthen the dollar, put downward pressure on the rupee, and negatively impact foreign investment flows into emerging markets. Recent domestic inflation data revealed that consumer price inflation surged to 4.82% in August from 4.45% in July, amplifying worries over inflation expectations and the Reserve Bank of India's (RBI) policy stance. The hawkish tone of the US Federal Reserve, aimed at tackling persistent inflation, particularly the impact of high oil prices, has led to a rise in US Treasury yields and strengthened the dollar, with the Dollar Index trading around 100.35. In India, the 10-year government bond yield remains elevated near 7.09%, reflecting the influence of higher global yields, rising crude oil prices, and the weakening rupee. Asian markets opened on a mixed note, with the Nikkei 225 up by 0.40% and South Korea's KOSPI largely unchanged. Nachiketa Sawrikar, a fund manager at Artha Bharat Global Multiplier Fund, noted that the Federal Reserve's rate hike of 25 basis points was widely anticipated by market participants. With inflation significantly above the Fed's 2% target, economic growth remained robust, and the labor market was relatively stable, the Fed felt compelled to show its commitment to restoring price stability. Sawrikar believes that a credible commitment from the Federal Reserve to control inflation could potentially stabilize and even lower longer-term Treasury yields, providing a constructive backdrop for equity markets. Sixteen out of the 18 analysts surveyed expect at least one further interest rate increase this year, indicating that today's move might not be a one-off adjustment. For equity markets, Sawrikar believes that stabilization in longer-term rates would be advantageous, allowing investors to focus more on corporate fundamentals and the upcoming third-quarter earnings season.",
  "summary": "The Fed raised its policy rate by 25 basis points to 3.75%–4%, its first increase in three years, and projected another hike this year",
  "key_points": [
    "India's domestic market opened flat to negative on Thursday.",
    "US Federal Reserve raised interest rates by 25 basis points to 3.75%-4%.",
    "Hawkish Fed tone may keep markets volatile and impact foreign investment."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}