1 day ago
Nifty, Sensex Open Higher as Rupee Slips Past 96
Indian stock markets started the day higher.
The rupee moved beyond 96.
The United States Federal Reserve raised interest rates by 25 basis points.
Its new target range is 3.75% to 4%.
This was its first rate increase since 2023.
Analyst Ambareesh Baliga said expensive oil could make imports and inflation worse.
He also said India’s central bank might raise rates before the year ends.
He expects weaker interest in the NSE IPO if its listing gain is smaller than expected.
Nifty and Sensex opened higher, while the rupee moved past 96.
The Federal Reserve raised its benchmark interest rate by 25 basis points to 3.75%-4%.
The rate increase was the Federal Reserve’s first since 2023.
Analyst Ambareesh Baliga warned that elevated oil prices could raise inflation and import costs.
Baliga said weaker-than-expected NSE IPO listing gains could reduce interest and prompt exits by HNIs after six months.
- Who
- Nifty, Sensex, the rupee, the Federal Reserve, Ambareesh Baliga, the Reserve Bank of India, and the National Stock Exchange of India are involved.
- What
- Indian stocks opened higher as markets focused on the rupee, oil prices, the NSE IPO, and the Federal Reserve’s rate hike.
- Where
- The market developments concern India, while the rate decision was made by the Federal Reserve.
- When
- The developments were reported for today’s market opening; the Federal Reserve hike was described as its first since 2023.
- Why
- Investors are assessing the effects of higher oil prices, inflation, import costs, the Federal Reserve decision, and expected NSE IPO listing gains.
Key facts
- Market opening
- Nifty and Sensex opened higher.
- Rupee
- The rupee moved past 96.
- Federal Reserve decision
- Rates increased by 25 basis points to a target range of 3.75%-4%.
- Previous rate hike
- The Federal Reserve’s increase was its first since 2023.
- Oil-price concern
- Ambareesh Baliga said elevated oil prices could raise inflation and import costs.
- Possible Indian rate move
- Baliga said the Reserve Bank of India could raise rates before the end of the calendar year.
- NSE IPO
- Baliga said lower-than-expected listing gains could reduce overall interest.
Quotes
Ambareesh Baliga
Independent market analyst quoted by Times Now Digital
“elevated oil prices could raise inflation, increase import costs and weigh on the overall economy, therefore this is concerning for all. The Fed rate hike was on expected lines, will not be surprised if we see RBI hiking rates before the end of the calendar year given the inflation concerns.”
timesnownews.com
“with the listing uptick expected to be lower than earlier envisaged, the overall interest could get affected. Post 6 months of listing, the hanging sword would be the huge number of HNIs who have been holding it for ages and would now look at tax efficient exit.”
timesnownews.com
Sources
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