The likelihood of additional rate hikes by the Reserve Bank of India next month increased in light of this week's higher domestic inflation figures.
Digital Desk: Consumer goods and
pharmaceutical sectors led the way as Indian shares edged up on Thursday, but
gains were restrained by worries that the U.S. Federal Reserve may pursue more
aggressive rate hikes in response to skyrocketing inflation.
The
S&P BSE Sensex was up 0.18 percent to 53,607.90 at 03:59 GMT, while the NSE
Nifty 50 index was up 0.2 percent to 16,004.
The
highest annual gain in inflation in 40-1/2 years occurred in June in the United
States, which strengthened the case for the Federal Reserve to raise interest
rates by 75 basis points later this month.
The likelihood of additional rate
hikes by the Reserve Bank of India next month increased in light of this week's
higher domestic inflation figures.
In
response to increased safe-haven flows into the dollar and withdrawals from
domestic stocks, the Indian rupee touched a record low versus the dollar for
the fourth session in a row.
The
fast-moving consumer goods index increased by 0.6 percent and the Nifty pharma
index increased by 1 percent.
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