We often hear that there is going to be a hike in interest rate in US. The dollar index is also moving upwards every day ? What is the impact of this on Indian stock markets ?
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A rise in the interest rates in the U.S negatively affects the Indian markets because of the simple reason that the foreign investors will pull out money from Indian markets and are more likely to save it in the U.S banks and bond yields in the U.S also go up with the rise in the interest rates .That’ll put pressure on the rupee as well because of the outflow.
Will IT companies be benefitted??
Thats a negative for the companies also.