Indian Stock Market Edges Higher Despite Fed Rate Hike

The Indian stock market began trading on Thursday with mixed signals, as the benchmark indices Sensex and Nifty edged higher in early trade. Crude oil prices had eased from recent highs, offering some relief to investors.

However, gains were limited due to the US Federal Reserve's decision to raise interest rates by 25 basis points to 3.75-4 percent. The Fed also indicated that another hike could follow this year.

Eternal, Bajaj Finance, Bharat Electronics, Mahindra & Mahindra, and Bajaj Finserv were among the major gainers in Sensex stocks, while HCL Tech, HDFC Bank, Tata Consultancy Services, Infosys, and Tech Mahindra lagged behind.

The rupee could be affected by higher US interest rates, which may strengthen the dollar and put pressure on foreign investment flows into emerging markets like India, according to Hariselvan Radhakrishnan, Founder and CEO of HST Wealth.