Decision on US interest rates, These rates shall be increased to 4 bearing on India
After nearly ten years in the US today may decide to raise interest rates. The US central bank Federal Reserve meeting on Tuesday has already begun and will be decided late Wednesday that the changes in interest rates. India and eyes are set on the crucial meeting of the Fed.
Experts believe that a recovery in the US economy given the Federal Reserve’s decision to increase interest rates by a quarter percent could. If US interest rates increased the impact of the capital markets worldwide, as well as commodity and forex markets will. The Indian market will be no exception.
India will be the four bearing
The US Federal Reserve increases interest rates by 0.25 per cent more effective the impact will have on the economy.
1. Increase the pressure on rupee
To raise interest rates in the US means that the US economy is improving, and further large growth potential. It will strengthen the dollar, the negative impact will be on the Indian rupee. The rupee will make imports expensive. Mumbai-based importer of electronic products our experts told weak rupee will have a direct impact on products that are imported. He especially electronic items such as cameras, mobile and laptop prices may rise. Further more it will be too expensive parts.
2. Reduces FIIs investment
Investors increased their investment in US interest rates in the US can take out of the domestic market. The impact on equity market is staring at us. FIIs 7628.81 crore in November and December (10 December) is sold at Rs 2733.18 crore. In this way the last two months, FIIs have sold nearly Rs 10361.99 crore.
Our Experts said the US Fed rate hikes will not blow the market now. US Fed rate hikes will not blow the market now. US markets rally after Fed rate hikes are likely to see. If, on behalf of the US Fed does not raise rates, it may disappoint the market and the fall in the market may increase. The US Fed’s rate hikes do not indicate negative in terms of economy.
3. Crude and gold will fall
Constant pressure on global commodity prices is being witnessed. If interest rates rise in the US dollar is strong, it will be due to the decline in crude and gold and silver. However, the Fed’s potential decision, the market has largely discounted.
Our Experts Commodities said that if interest rates increased, the value of a dollar could go up to Rs 68.40. The appreciation of major currencies such as the crude and gold prices will fall, which will not get the full benefit India.
Our Experts, head of research at SMC Bataya due to the decline in the rupee against the dollar despite the crude cheaper fuel price cut is not enough, as it should be. On the other hand, the strong dollar, gold prices in global markets have come to 6-year low, but in the domestic market have come to 6-year low, but has not seen a significant fall in the domestic market.
4. Banking, infrastructure and IT companies affected
US interest rates rise, India’s IT, banking, infrastructure and real estate companies will have much impact, because 60 per cent of the total income of the IT companies comes from the US and Europe. Infrastructure and real estate sectors as well as large companies have taken large loans in dollars. Rising interest rates will rise in the dollar index, it will increase the burden of debt on companies.
After 10 years in US rates expected to rise
For the first time in a decade the US Fed is expected to raise rates. Last week, Federal Reserve Chairman Janet Yellen said the US economy was close to being balanced. So the economy is getting better chance to increase the rates. Please tell, the 2008 recession in the US rates were cut to zero to 0.25 percent.
Expert opinion of DBS Bank economist Radhika Rao in US rates rise, the Indian market seems to be on domestic affairs. Eye of the domestic markets of the US Fed’s announcement. However, the rise in US rates in the short term, the impact will be on the Indian market.
CapitalStars Financial Research Equities our experts said that the US Fed will increase rates, but it is sure to increase interest rates so they are important. Growth in the US is still not so strong that more than 2 possible edge. However, the FOMC said that rates should rise 4.
The Fall of Crude Increased, which will Beneficial Companies…
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