The market breadth was positive. Out of 2,519 stocks traded so far, 1,266 stocks advanced while 1,105 declined on the BSE.
Rajan also did his bit by taking steps to protect the currency against speculative attack as did the government in curbing gold imports and bringing the Current Account Deficit
China would contribute $41bn towards the pool. Brazil, India and Russia would contribute $18bn each; South Africa $5bn.
"Indian markets (are) well placed to absorb the US Fed rate hike. Gradual approach in future increases augurs well for emerging markets," Economic Affairs Secretary Shaktikanta Das has tweeted.
The Federal Reserve, whose policy-setting Federal Open Market Committee concludes a two-day meeting on Wednesday, has said it expects to keep short-term interest rates exceptionally low to help support the economy.
The yellow metal fell by Rs 115 to Rs 26,715 and silver lost Rs 400 to Rs 40,350 per kg.
Sensex and the Nifty reached an intra-day low of 19,318 levels and 5,845 mark, respectively.
The domestic market has posted its third straight weekly gain, supported by positive global cues, strong foreign fund inflows and good numbers from some companies.
The apex bank's observation on Tuesday comes at a time when global markets remain uncertain about the overall impact of the tsunami and the subsequently unravelling nuclear crisis in Japan.
The S&P BSE Sensex shed 119 points to close at 27,977 and the Nifty50 dropped 45 points to finish at 8,591.
The US Federal Reserve has said economic activity is improving while deciding to continue with the near-zero interest rate regime to bolster the economy.
The central bank also left the benchmark rates unchanged in the range of 0 to 0.25 per cent. The Federal Open Market Committee which decides on the key rates has retained the same near zero and said economic conditions warrant 'exceptionally low levels' of federal fundsfor a longer period.
'Three external members of the first MPC are respected researchers with excellent academic background, but there is no harm in considering academicians with diverse backgrounds such as finance and labour along with economists for this body,' recommends Tamal Bandyopadhyay.
'India is not so distant from years of high and entrenched inflationary expectations that it should start trying to play games with the economy the way the West's central bankers think they are entitled to,' argues Mihir S Sharma.
Gold jumps on good seasonal support; silver extends losses.
Hawkish guidance by the US Fed raises concerns it could tie the hands of RBI from trimming rates.
The US Federal Reserve on Tuesday cut interests rates by 0.75 points from 3 per cent to 2.25 per cent. The cut initially disappointed markets which had risen sharply on hopes of a 1 percentage point cut. The decision was taken by eight votes to two. First quarter earnings at the two Wall Street firms fell less than analysts had expected, easing concerns about the state of the investment banking sector.
The Federal Reserve's move comes a week after it trimmed 0.75 per cent of the fund rate owing to concerns that the US economy was headed towards a recession.
Traders rejoice when the Fed drops the rate, but...
On Wednesday, the rupee ended barely steady at 64.93.
The Rupee is likely to recover during day trad, say currency watchers.
The cut is being seen as an emergency measure to boost the US economy.
The Federal Open Market Committee's statement after meeting in Washington said inflation has been "elevated" and remains a risk, using words identical to the last decision on June 29.\n\n
Gold advanced one per cent to $1,212.21 an ounce in Singapore.
Rupee is likely to remain under pressure due to domestic concerns.
Extending losses for the second straight session, the rupee slipped by 11 paise at 66.54 against the US dollar.
The Federal Reserve on Wednesday trimmed US interest rates a quarter percentage point to 45-year lows, citing recent hopeful economic signs as it offered a less potent growth tonic than markets had hoped.\n\n\n\n
The rupee rose by 4 paise at 66.88 against the US dollar in early trade on Wednesday.
Asian emerging market stock prices did see a bounce post Fed-talk.
Rupee ends flat against dollar ahead of Fed policy outcome.
On Monday, the rupee gained 16 paise.
The home currency failed to keep momentum going and largely traded in a narrow range with positive bias in the absence of any market moving factors
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The broader markets traded positively with mid-caps and small-caps rising 0.5 per cent each on the BSE.
Friday's US data showed addition of 173,000 jobs in August.
The Indian rupee on Monday reacted downwards by 12 paise to log nearly one-week closing low of 63.41 against the Greenback.
A weak dollar overseas also aided the rupee rise while fresh sell-off by foreign funds in domestic stocks capped the currency's gains, forex dealers said.
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