Fed hike rate by 0.25% since 2018.
What does that means to Indian stock market?
From the last 2 years i.e. after Covid-19, US government was giving loans at almost a 0% interst rates. That free money was diverted to country like India. And, market was booming.
What does that means to Indian stock market?
From the last 2 years i.e. after Covid-19, US government was giving loans at almost a 0% interst rates. That free money was diverted to country like India. And, market was booming.
But Now as already hinted by Fed that they will increase the interest rates 5-6 times in a year, FIIs are continuously pulling money from the Indian market since oct-21 and more than 1 lac crores of money being pulled out.
However, positive thing is, Indian stock market especially #nifty50 and #Sensex are looking resilient with the support of domestic investors. But how long they can support is big question.
With fed increasing the interest rates, RBI in coming months has to do the same, considering inflation is peaking in India too. And, inflation is not good for equity market. With high inflation, consumption naturally comes down impacting businesses and stock market.
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