Fed Interest rate hike

Most of the Experts says FII’s will withdrawn the money from Indian and other market and they will invest in USA , If Fed hike the Interest Rate 0.25 % or 0.5 % . If so , Stock market returns is lesser than 0.25% per year ?

That wouldn’t be the right way to interpret. The price of one share of Lupin was rupees 1402 on Dec 26, 2014. It was rupees 1803 on Dec 24, 2015.

So there was an appreciation of 400 rupees. If you had bought 100 shares on Dec 26, 2014, you would have made a profit of rupees 40,000.

In terms of percentage, that would be a profit of approximately 29 %, if I’m not wrong.

Hope that helps : )

Actually what happens that when fed raise rates,cost of borrowing goes up, USA 10 year yield will cross 3% and take 2 % cost of carry , so if somebody bought at 3% from USA bank and 2% cost of carry and put in debt market in India , he will get approx 7.5% interest rate, and then lots of taxes, so indian debt market will see outflow and then ruppe will start depreciating and fiis will start selling due to fall in rupee,this is first side of story, second side of story is due to fed rate hike dollar index will start moving and commodities will fall ( like happening today, there is nothing like oversupply in crude market, crude is falling due to dollar appreciating). As commodities are falling , sovereign funds will see redempention pressure and there will be selling in emerging market and India is one of them, third everybody has a wrong thinking when modi wins and nifty rally from 6000 to 9100 and mutual funds see lots of flow, media anchors start saying that indian market now does not need fiis money , retail money will run the market, now fiis are selling and nifty falls from 9100 to 6800 and now u himself decide who the fuck runs the market fiis or retail money

Thank you very much Nishant