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Fed Rate hikes and the Indian Markets

The table below shows the size and length of the FED Tightening Cycle

Source: Samir Arora

In recent memory,the FED started tightening on 30 June 2004,hiked rates 17 times till the rate was 5.25% and the cycle lasted 25 months i.e. till July end 2006

How did the Indian markets fare in this period?

The Nifty went from 1505.6 on 30 June 2004 to 3143.2 on 31 July 2006 i.e. it doubled.

 

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