Home Markets Are Indian stock markets prepared for aggressive rate hikes by Fed?

Are Indian stock markets prepared for aggressive rate hikes by Fed?

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Indian stock markets fell sharply today amid weak global equities as hotter-than-expected US inflation data fuelled expectations of aggressive interest rate hikes by the Federal Reserve. The Sensex fell over 1,000 points at its day’s low before paring some losses. At 1:15 pm, both Nifty and Sensex were down over 1% each with broader markets – both BSE midcap and smallcap indices  – also seeing a cut of over 1% each. 

Today’s selloff in Indian markets comes just a day after the Reserve Bank of India maintained its dovish stance and said continued policy support was warranted to help the economic recovery.

Goldman Sachs Group Inc. now sees the Federal Reserve raising interest rates seven times this year to contain US inflation, rather than the five it had expected earlier.  Aggressive rate hikes from Fed raises worry about accelerated selling by foreign investors in Indian markets, who have sold a…

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