US rate hike News

The interest rate hike by the US Fed is not likely to create much volatility in Indian markets and will have only a minimal impact on the RBI's monetary policy stance, industry bodies said on Thursday.

The NSE index rose to a record 9,158.45 before ending the day at a new closing high of 9,153.70, up 68.90 points, or 0.76 percent, breaching its earlier 9,087 scaled on March 14.

 A massive $3.5 billion was withdrawn from capital market in December following rate hike by the US Federal Reserve.

China's currency renminbi today fell to an eight-year low against the US dollar over fears of capital outflows and the communist giant's main stock exchange closed lower after the US Federal Reserve's move to raise the benchmark interest rate for the first time this year.

Indian stock markets ended lower on Wednesday on a cautionary note that US Federal Reserve will hike interest rates in it Federal Open Market Committee (FOMC) — the policy-setting body of the Federal Reserve System meeting on Thursday.

The U.S. Federal Reserve raised interest rates by a quarter point on Wednesday and signalled a faster pace of increases in 2017 as the Trump administration takes over with promises to boost growth through tax cuts, spending and deregulation.

Heightened chances of a US rate hike, along with a slower pace of reforms and soon to be released domestic macro-economic inflation data, are expected to keep the Indian rupee under pressure during the upcoming week.

Stocks saw a positive start Monday, only to reverse the trend later as the Sensex fell about 144 points to end at an over 3-month low, unnerved by muted start to second quarterly earnings and a lacklustre global trend.

Lower earnings guidance from IT majors, along with heightened chances of a US rate hike and negative global crude oil prices dragged the Indian equity markets to close in the red on Monday.

Gold extended its slump for the third day and lost another Rs 170 to Rs 30,320 per 10 grams in the bullion market Friday amid a weakening global trend and slack demand from jewellers.

Gold cracked as much as Rs 730 -- its biggest one-day fall this year -- to Rs 30,520 per 10 grams, in sync with a weak trend overseas on growing US rate hike buzz amid a fall in demand at the spot market.

The BSE benchmark Sensex tanked 443.71 points Monday, tracking heavy selling in global markets following re-emergence of US Fed rate hike concerns.

Investors turned cautious as questions arose over the sustainability of loose monetary policies offered by major central banks around the globe.

Gold fell on Monday to its lowest in nearly two weeks as the dollar strengthened after comments from US Federal Reserve officials increased bets on a US rate hike this year.  

The 50-share NSE Nifty recaptured the 7,900-mark to hit a high of 7,941.20 before winding up at 7,934.90, a hefty rise of 186.05 points or 2.40 percent.  

Gold jumped to a three-week peak on Tuesday on expectations the Federal Reserve will not raise US interest rates soon and as the dollar traded close to its lowest in nearly eight months, though profit-taking chipped away at some recent gains.

In its longest winning-run this month so far, the BSE Sensex took off on a positive note and advanced further to hit the day's high 25,831.31 before settling higher by 309.41 points, or 1.21 percent at 25,803.78, a level last seen on December 3.  

End of uncertainty and accommodative outlook for future will help policy makers in emerging economies.

The US Federal Reserve last night hiked interest rates by 0.25 percent.

In a historic move, the US Federal Reserve on Wednesday hiked interest rates by 0.25 percent, the first raise in almost a decade, a sign that the world`s largest economy had overcome most of the wounds of the global financial crisis.