More Stories

Informist, Thursday, Sept. 17, 2026

By Adhithya Aji

MUMBAI – Benchmark indices are expected to open lower after the US Federal Reserve hiked interest rates for the first time in three years. The US central bank cited stubborn inflation as the reason behind the decision. Now, market participants expect the Reserve Bank of India to hike the interest rates.   

The US Fed unanimously voted to hike the Fed funds target range by 25 basis points to 3.75-4.00% to curb inflation that remained well above its target, and indicated another 25 bps hike in 2026. The 12-member committee unanimously supported the rate hikes citing that the inflation remain elevated. "This summer's inflation readings do not tell me that underlying trends have meaningfully improved," US Federal Chairman Kevin Warsh, said in his opening remarks at the press conference, CNBC reported.

Following the rate hike, the Dow Jones slumped 700 points and ended over 1% lower, the S&P 500 index was down 0.5%, while the Nasdaq Composite was flat. The US 10-year benchmark yields were largely unchanged, settling close to 5%. Most of the Asian markets traded higher with Japan's benchmark index Nikkei 225 and South Korea's Kospi up 0.1% each.

"Rising crude and inflation along with increasing global rates may also guide the India MPC to raise rates by 50 bps," Deepak Agrawal, chief investment officer of debt and head products at Kotak Mutual Fund, said in a note. Voicing the same, Emkay Global Financial Services said that based on the August CPI figures, which showed higher inflation and a recent spike in energy prices, the Reserve Bank of India is likely to raise its key interest rate. "A 25bp hike in October by the RBI looks more likely, but we also expect this to be a shallow hiking cycle (50-75 bps) and will await more clarity at the October review," the brokerage said in a report.

At the same time, the West Asia war continued to escalate. The war pushed crude oil prices higher, sparking inflationary worries globally, and finally pushing the US Federal Reserve to hike interest rate. Saudi Arabia intercepted and shot down a drone deployed by the Houthis that targeted the holy city Mecca on Tuesday, as per several media reports. The November futures of Brent crude was nearly $106 per barrel, still up 45% from pre-war level.

At 0802 IST, the September futures of GIFT Nifty contracts were 0.4% higher at 23223, indicating a muted start for the Nifty 50. Wednesday, the Nifty 50 index had ended the session at 23217.60 points, up 0.4% from Tuesday. "The current chart structure and elevated crude oil prices indicate the possibility of a further downside move in the near term," Vipin Kumar, senior technical and derivatives analyst at Globe Capital Market, said. The support for the Nifty 50 index is seen at 23000-23100 and a closing below these levels could push it to 22500 in the near term, Kumar said.  End

US$1 = INR 95.96

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.