How will Fed's fourth 75 bps rate hike impact Indian stocks?
FOMC anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time.
On expected lines, the US Federal Reserve hiked the policy rate by another 75 basis points taking it to 3.25-4% from earlier 3-3.25%. FOMC is committed to taming inflationary pressure and hence maintained its aggressive approach towards monetary policy. The US market reacted to Fed's hike in a seesaw pattern, while Asian cues witnessed a drop including lacklustre demand in Indian equities. The reason behind the volatility in equities globally is due to Fed's embracing a more hawkish outlook than expected.
Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!Let’s get started