On Thursday, Sensex
attained a rise of more than 150 points. Nifty reclaimed by 7800 mark as on
track of higher range in Asian markets. INR went up to 66.62 per USD, against
66.73 of Wednesday.
The top 10
developments of Indian market under the influence of the US Fed rate hike are
noted hereby.
Image Source: ZeeNews
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1. The base of 25-point rate hike of the US Fed
helped the BSE Sensex as well as Nifty in attaining the hit last week, amidst
the continuous 3-month lows. Rupee hit in above 2 years’ lows by crossing 67
INR per USD, since foreign investors gave up at large due to anticipation made
over Fed rate hike.
2. Since, Nov. 2015,
FIIs withdrew almost 2.5 billion USD from its domestic markets and after the
real announcement; situations are predicted to be under control soon.
3. Followed by Fed
movement, INR gains are liable to get capped as USD gained against most of the major
currencies.
4. Moreover, even China
allowed slip to its currency with 10th consecutive session, in order
to hit lowest range as was in June 2011. This declination can pressurise other
Asian nation in depreciating their currencies to be in the competition.
5. Dr. Raghuram
Rajan, Governor Reserve Bank of India (RBI) has already stated that Indian
central bank has prepared well for Fed move. He added that the policy of central
bank aims in supplying "plentiful"
amount of liquidity to the markets, and "perhaps" can opt towards buying of bonds in the open markets,
as per long-term demands.
6. Shaktikanta Das,
the Economic Affairs Secretary declared that the rate hike by US Fed was much
expected, and it is definitely in favour of Indian IT and export sectors.
7. Stocks of Indian
IT get higher as Fed added confidence to the US economy. However, the US
Congress raised special fee by 4,500 USD over H-1B and L-1 visas that are much
applied by IT companies from India, and can check the gain in IT stocks.
8. Fed’s hike and
future growth in interest rates is made after almost a decade. It expresses faith
on the US economy, as against the financial crisis of 2007-2009.
9. Vote of
confidence by Fed to the US economy appears positive to international financial
analysts. The development in Asian stock markets on 10th Dec. 2015
proves it all.
10. Financial analysts
state that domestic elements such as earnings as made in the sector of Indian
corporate and initiations of reform Bills, such as GST are liable to get triggered
in Indian markets.
Keywords Nifty, Sensex, Fed,
INR, USD, hike, Rupee, Dollar
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