Initially, both the bellwether indices of the Indian equity markets opened on a positive note in sync with their Asian peers, as suspense cleared on the US Federal Reserve's move on a rate hike.

Investors breathed a sigh of relief as the US Fed's Federal Open Market Committee (FOMC) on early Thursday (India time) raised key interest rates by only 25 basis points.

The interest rate rise was widely expected and factored-in by investors. A higher rate hike would have led to massive pull-back of foreign funds from emerging economies like India. In addition, a dovish outlook by the US Fed, which said that it will maintain an accommodative stand, soothed investors' nerves.

Besides rate hike, the FOMC projected an improved US economic outlook, lower unemployment and stable inflation. This was a major positive trigger for Indian markets, as US is India's key exports market.

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