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Since 2015, irrigated Barring one on Wednesday, interest rates have increased 11 times. Out of 11 occasions, nifty There has been a decline only four times in one month and three times in three months.
The Nifty rose on seven occasions a month after the Fed hiked rates. Dow Jones In the next one month, 7 out of those 11 cases have increased and in three months there has been an eight-fold increase. “Generally, the rate hike cycle starts with a strong economy helping corporate earnings growth. During this cycle, stocks especially in cyclical sectors such as materials, industries and energy will do well”, said G Chokkalingam, CEO, Equinomics Research & Advisory. “But rising rates could impact growth stocks.”
Between December 2015 and December 2018, the Fed raised rates by 200 basis points. During this period, the Nifty gained about 40 percent, while the Dow Jones index gained 31 percent. Between March and December 2018, the Fed rate increased by 100 bps and the Nifty rose by nearly 9%.
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