Indian stock markets and the rupee are likely to open higher on Friday, following the Federal Reserve's decision to keep interest rates near zero. Nifty futures traded on the Singapore Exchange were up 0.3 per cent as of 7:25 a.m., indicating a positive start for domestic equities.
The US central bank said an array of global risks and other factors convinced it to delay what would have been the first rate hike in nearly a decade. It left open the possibility of a modest policy tightening later this year.
Stocks in the US post the Fed's statement mostly ended lower. The Dow Jones index ended 65 points, or 0.4 per cent lower amid a volatile session.
The dollar, however, fell to a three-week low against a basket of currencies. Commodities priced in the dollar gained strength tracking weakness in the dollar. Gold prices rose to two-week high post Fed's announcement.
The weakness in the dollar will help the rupee, which has lost 4 per cent against the greenback in the last month.
Fed's decision is likely to halt the exodus of foreign funds from domestic equities, analysts say. The prospect of a rate hike in the US had led foreign investors to sell equities worth Rs 20,000 crore since August 1. This has resulted in 8 per cent correction in the Sensex. Indian markets have fallen sharply despite aggressive buying by domestic funds.
Disclaimer: Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. canaranews.com will not be responsible for any defamatory message posted under this article.
Please note that under 66A of the IT Act, sending offensive or menacing messages through electronic communication service and sending false messages to cheat, mislead or deceive people or to cause annoyance to them is punishable. It is obligatory on CANARANEWS to provide the IP address and other details of senders of such comments, to the authority concerned upon request.
Hence, sending offensive comments using canaranews will be purely at your own risk, and in no way will canaranews.com be held responsible.