Fed Rate Hike Impact on Indian Stock Market – 2025 Investor’s Guide
Fed Rate Hike and Indian Market Reaction: What Investors Must Know π Introduction: Why Fed Rate Decisions Matter Globally The Federal Reserve (Fed), the central bank of the United States, might be thousands of miles away from India — but its monetary policy decisions ripple across the globe . In 2025, with inflation concerns and geopolitical uncertainty, Fed rate hikes have become one of the most influential factors affecting not only the U.S. economy but also emerging markets like India. Understanding the link between Fed rate hikes and Indian stock market reactions is essential for investors, traders, and policymakers alike. Let’s explore this relationship, sectoral impacts, and how to adapt your portfolio accordingly. π‘ What Is a Fed Rate Hike? The Federal Reserve rate , also known as the Federal Funds Rate , is the interest rate at which banks lend to each other overnight. When the Fed increases this rate (hike) , it signals: An effort to curb inflation...