Top 10 developments of Rupee at the rate hike of US Fed

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

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 10^th 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 10^th 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.

Via NDTV Profit

Keywords Nifty, Sensex, Fed, INR, USD, hike, Rupee, Dollar