Indian Stocks Brace for Impact as Global Rate Hike Cycle Tightens
The Indian stock market is facing a challenging year due to various headwinds such as elevated crude oil prices, persistent selling by overseas investors, and record-low rupee.
The Reserve Bank of India (RBI) is expected to consider raising interest rates in its upcoming policy meeting as domestic inflation also moves above the target.
Rising inflationary pressures have prompted major central banks to raise interest rates in September, with the US Federal Reserve hiking rates by 25 basis points to 3.75-4.00% and the European Central Bank increasing its deposit rate to 2.50%.
The Bank of England held Bank Rate at 3.75%, but the vote was hawkish, indicating a potential future rate hike. The Bank of Japan raised its policy rate by 25 basis points to 1.25%, its highest level in 31 years.