Free Stock Tips - The US Federal Reserve's upcoming decision to increase or accumulate interest rates will play a critical role in determining the direction of not just Indian equities & currency markets, but also of the business confidence in the highest economy of world.

The Federal Open Market Committee (FOMC) outcome, if on generally estimated lines of no a rate hike, would lead to a temporary relief-rally in forecast of our own policy rate cuts. But, unstability will persist, told by Devendra Nevgi.

While, even a increment broadly would indicate strength in economy of US(united states) and largely positive for global and emerging markets (EMs) growth in long run," Nevgi told IANS, referring to the policy reviews by the US on Thursday and by the India's central bank on Sep 29.

A rate elevate could potentially lead to massive amounts of pull-back of foreign funds from the emerging like India. US Dollar will strengthen against their currencies, gold & other assest classes, they contributed.

High interest rates in the US are expected to wean away foreign portfolio investors (FPIs) from India. It is also expected to dent business margins as access to capital from the US will become expensive. Foreign funds have sold around $3 billion, mostly in Indian equities since month of August.

If the Fed goes ahead with a rate cut this week, we expect some foreign funds outflow in the short term, leading to some volatility and downside from current levels, Vaibhav Agrawal, a senior researcher told IANS.This view was expressed by nearly all the market speculators that IANS spoke to on the rate hike. "The markets will fall immediately.

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