Business
Indian Share Markets Close Flat as Investors React to US Federal Reserve Rate Hike
Reported by Kunal Bhatia (Senior Writer) · Livemint - Markets ·
Representative image · Wikimedia CommonsIndian equities ended largely flat on Thursday as investors digested the U.S. Federal Reserve's overnight rate hike, even as broader market participation stayed strong. Nifty 50 edged up 53 points, or 0.23 percent, to close at 23,270.60. Sensex slipped 21.86 points, or 0.03 percent, to settle at 74,314.59. The Fed raised interest rates by 25 basis points, marking its first hike since 2023. Officials also signaled the possibility of another increase later this year. This move kept U.S. bond yields elevated near 5 percent and weighed on rates.
ExplainerWhy this matters
What Happened
The U.S. Federal Reserve raised interest rates by 25 basis points, prompting Indian stock markets to end Thursday's session flat as investors reacted to the global monetary tightening.
Why It Matters
When the U.S. central bank hikes rates and keeps bond yields high near 5 percent, global investors often pull money out of emerging markets like India to park it safely in the U.S. This dynamic creates pressure on Indian currency and asset prices.
What Happens Next
Investors will watch upcoming U.S. economic data and statements from Fed officials to gauge if another rate hike will indeed happen later in the year.
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