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Nifty to follow global cues, open in green on US Fed hike

Most experts believe the dovish commentary from the US Federal Reserve will prevent any knee-jerk reaction in the Indian equity market.

After having a widespread cautious sentiment on Wednesday, the Indian equity market is likely to open in the green today. The SGX Nifty, an indicator of the market opening, was trading at 7779.50, up 19.50 points at 7:30 am.

On the global front, the US Federal Reserve hiked its benchmark interest rate by 0.25 percent for the first time in a decade. The move, closely watched, across the globe is seen as a dovish commentary by Fed chairperson Janet Yellen.

Yellen said the Fed’s monetary policy remains “accommodative” and there will be a “gradual” increase in Fed fund rates.

Experts believe the positive statements will prevent any kneejerk reaction in the Indian markets, especially given the fact that the move was mostly factored in.

The Dow Jones ended up about 224 points after earlier adding 250 points with Goldman Sachs contributing the most to gains. In morning trade prior to the Fed’s decision, the Dow added as much as 165 points before briefly turning negative.

The S&P 500 ended slightly off session highs with gains of about 1.45 percent, in positive territory for the year so far. The index posted its first three-day win streak since October.

Meanwhile, Asia’s stock markets opened in positive territory, taking a positive handover from the Wall Street overnight after the Federal rate hike.

In other asset classes, the US Dollar rose slightly against major currencies while crude fell more than 3 percent , snapping a two-day rebound.

Stay tuned for more.

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