Indian equities open higher after US Fed rate hike

Mumbai, Dec 17 (IANS) Key Indian stock market indices opened higher on Thursday following global cues, as the suspense over the expected rate hike by the US Federal Reserve was finally broken the day before, with a slight nudge up for the fist time since 2006.

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The sensitive index (Sensex) of the Bombay Stock Exchange which had closed on Wednesday at 25,494.37 points, with a gain of 173.93 points or 0.69 percent, opened higher the next day at 25,596.63 points. Minutes after the opening bell, it was ruling at 25,579.77 points, with a gain of 85.40 points or 0.33 percent.

At the National Stock Exchange, against the previous close at 7,750.90 points, which was a gain of exactly 50 points, or 0.65 percent, the index was ruling at 7,778.75 points — higher by 27.85 points, or 0.36 percent.

This was the third consecutive day of gains for the two indices.

“The US markets rallied for the third consecutive session after the Federal Reserve raised its key interest rates and emphasised a gradual path for future rate hikes. The move was highly anticipated and was read as a vote of confidence in the economy,” Angel Broking said in an analysis before the markets opened.

“European shares closed higher holding onto the gains, before the US Federal Reserve’s expected decision to hike interest rates which signals strength of its economy. Indian shares continued their gaining streak for the third day. Positive cues from the Asian markets helped the domestic indices to close in the green.”

Even though there is a fear of a flight away from the global markets, notably those in emerging economies, to the US after the rate hike, Asia-Pacific indices were ruling higher on Thursday. Australia’s S&P ASX 200, Japan’s Nikkei, South Korea’s Kospi, Hong Kong’s Hang Seng Index and Shanghai Composite Index were all up.

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