Nifty 50 futures listed on Singapore-based exchange SGX, an early indicator for Nifty 50, was trading 1.47% higher at 8:45 am on Thursday, after the US Fed raised interest rates by 0.25% amid strong global cues. Indicates Dalal Street, to open a gap. At the same time, Dow Jones futures fell 0.2%.
Major indices on Wall Street rallied on Wednesday following their first rate hike since 2018 to tackle the highest inflation figures in four decades, after the Fed raised interest rates by 0.25 percent.
The Federal Open Market Committee also hinted at raising interest rates in all six remaining meetings, leading to a 1.9% increase in rates by the end of the year.
Historical data suggests tighter monetary policy is often accompanied by tangible gains in stocks, Reuters said. Moreover, oil prices continued to fall for the fifth consecutive session on Wednesday amid positive expectations from Russia-Ukraine peace talks and a rise in US inventories.
The Nasdaq Composite rose 3.77%, the S&P 500 2.24% and the Dow Jones 1.55% on Wednesday.
Stocks in Asian markets opened higher on Thursday, tracking an overnight rally on Wall Street as the Fed announced its first rate hike in 3 years to curb rising inflation.
At 8:40 am, Japan's Nikkei 225 was up 3%, South Korea's KOSPI rose 1.76%, while MSCI's broadest index of Asia-Pacific shares outside Japan rose 5.1%.
Hong Kong's Hang Seng Index rose 5.35% and China's Shanghai Composite rose 2.2%.