Indian frontline benchmarks - the S&P BSE Sensex and the Nifty50 - have rallied around 12 per cent each since June-end and outperformed their global peers by a wide margin. On Thursday, the US Fed hiked interest rates by another 75 basis points (bps) - the third such hike this year - and surprised the markets by projecting further sizable hikes in the coming months. With the latest hike, the Fed fund rate (FFR) now stands in the range of 3 - 3.25 per cent and is highest since January 2008.
'The market will focus on the fact that India does have strong earnings growth this year.'
Investors need to understand and keep in mind how interest rates and the stock markets are related in order to make informed decisions.
The failure of SVB was due to idiosyncratic reasons, but shows how higher rates can expose fault lines in unforeseen places, observes Neelkanth Mishra.
It's the first time in my memory that I have seen a negative expected return for equities, notes Akash Prakash. Hopefully, this implies the consensus is being too negative, and markets, as usual, will surprise everyone and deliver the least likely outcome.
Gold prices on Wednesday sky-rocketed by Rs 340 at Rs 11,510 per ten gram as investors directed their money to the precious metal after the dollar fell, sparked by Federal Reserve cutting key interest rates.
Reserve Bank of India Governor Bimal Jalan said on Friday that there was no proposal to lower the short-term benchmark repo rate now.
History would indicate that a recession is not that far off.
In the Sensex pack, Axis Bank, Tata Motors, Infosys, Kotak Bank, HDFC Bank, RIL, Bajaj Auto, SBI, HUL, Tata Steel, Vedanta, HFDC, TCS, ITC and Sun Pharma jumped up to 4.64 per cent.
Emerging markets could be affected by a combination of lower liquidity and higher dollar interest rates caused by a hike in the US Fed funds rate.
As FY20 Budget fiscal measures need to be better understood, a reversal of the stance back to neutral will allow MPC flexibility to respond to incoming data.
India has emerged as the brightest spot in the Asia Pacific region as reform has picked up pace in the country in recent months, a top credit rating agency has said.
Bank Nifty pared all its intraday gains to end over 1% lower led by losses in BoB, ICICI Bank, Axis Bank and Bank of India
The dollar-rupee rate could move in the opposite direction if dollar policy rates rise and the FPIs sell in December, says Devangshu Datta.
It is surprising that central bankers around the world have cautioned the US Federal Reserve against raising rates.
The S&P BSE Sensex shed 119 points to close at 27,977 and the Nifty50 dropped 45 points to finish at 8,591.
Investors have turned cautious ahead of the policy meetings of central banks in Japan and the US
The market is clinging to support above the 8,000 mark and hitting resistance above 8,150.
'This looks like a long-term bear market and there could be mounting losses in the near-term,' says Devangshu Datta.
Index heavyweights Reliance Industries and ITC were the top losers along with ICICI Bank and SBI
US Fed rate rise raises risk of further drying up of FII flows.
India was less directly affected by the Chinese stock market rout and yuan devaluation that battered currencies and markets in the region.
India has not been able to compete with countries such as Bangladesh and Vietnam.
Investors turned cautious ahead of the US Fed meet outcome later today and July F&O expiry.
Inflation is down, growth is headed for recovery. RIL and subsidiary Jio are on an upswing. However, stressed loans and impending job losses are the dark clouds, says Devangshu Datta.
Asian emerging market stock prices did see a bounce post Fed-talk.
The belief that the Fed knows something that lesser mortals don't is common.
A rate cut will bring positive sentiment around the Budget.
Nearly half of the 20 indexes polled globally are now expected to end the year lower than where they started
The year 2015 may well turn out to be a watershed in global macroeconomic adjustment.
'Markets should be driven more or less by earnings growth.'
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