Mumbai, Dec 17 : As the US Federal Reserve announced a historic rate hike, Indian stock markets and the rupee edged higher on Thursday with the Sensex gaining over 150 points and Nifty reclaiming the 7800 mark.
Reports quoted analysts as saying that the US Fed’s 25-basis-point rate hike was already factored in by the Indian markets. The BSE Sensex and Nifty had hit 3-month lows last week while the rupee hit over two-year lows beyond 67/dollar as foreign investors withdrew heavily from Indian markets in anticipation of Fed rate hike.
FIIs have withdrawn nearly $2.5 billion from domestic markets since November. Now that the actual announcement has come, things are likely to calm down, analysts say.