Indian equity indices opened positive on Thursday as US Federal Reserve hiked interest rates by 25 basis points. 

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At 9.40 am, Sensex was trading at 29,604.72 up 206 points or 0.70%, while Nifty 50 was trading at 9,152.30, up 67 points or 0.70%.

Meanwhile Indian Rupee was trading higher against US dollar. The rupee was trading at 65.345 above 0.110 paise or 0.17%. 

Top gainers on BSE were - Adani Ports at Rs 317.35 per piece (2.40%), followed by Hindustan Unilever at Rs 911.60 per piece (1.32%), Larsen & Toubro at Rs 1565.85 per piece (1.20%), ONGC at Rs 192.85 per piece (1.13%) and Tata Steel at Rs 483 per piece (1.13%). 

Bharti Airtel and Hero Motocorp were the only losers on BSE, trading at Rs 360.45 per piece and Rs 3379 per piece down in the range of 0.60% - 0.75%. 

US Federal Reserve raised interest rates by 25 basis points for the second time in three months on the back of  strong job gains and confidence that inflation is rising to the central bank`s target.

Analysts at Motilal Oswal said, "Fed hiked rates by 25 bps on expected lines. The pace of rate hikes is expected to be gradual. There is no change in the Fed's stance."

They added, "Expect metal stocks to participate on back of the same. Telecom sector will continue to be in limelight on back of consolidation moves getting played out. Sectors like defense, infra will continue to be in focus as these are seen as key thrust areas from govt."

 Many experts believed a rate hike would mean outflows from Indian stock exchanges. 

Commenting on Nifty's performance and outlook, Amit Goenka, Analysts at Multibaggerstocks.co.in, told Zeebiz, "One of the biggest threats to the current  bull run is rate hike by the US Fed. Markets will react to the rate hike on Thursday morning. If the Nifty still manages to sustain at current levels till Friday closing, then we expect further upside." 

According to a HDFC Securities report, a rate hike in the US will mean outflows from the Indian markets are misplaced.