June 15, 2018

FII flows to Indian markets may slow as Fed hikes rates

Mumbai: Foreign investors, who have pulled out nearly $240 million from Indian stocks since the beginning of the year, may continue selling after Wednesday’s interest rate increase in the US, but domestic institutions which have supported the markets so far are expected to cushion some of the blow, experts said.

Wednesday’s quarter percentage point increase—the second hike this year and the seventh since it started increasing lending rates in 2015—takes overnight lending rate in the US to a range between 1.75% and 2%. The US Federal Reserve’s rate-setting panel also signalled two more rate hikes this year and dropped its pledge to keep rates low enough to stimulate the economy “for some time”.

Read more at https://www.livemint.com/Money/FHxQ3TZTUhOJ7evgBvI7iJ/FII-flows-to-Indian-markets-may-slow-as-Fed-hikes-rates.html

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