Stocks in Indian rose sharply on Wednesday, trading back above the psychologically important 15,000 level after market speculators covered big short positions. However, the gains may be short-lived after India's central bank raised interest rates for the first time in 15 months to combat rising inflation caused by soaring food and energy prices.
The Reserve Bank of India hiked the repurchase rate, which is the rate commercial banks borrow funds from the central bank, to 8% from 7.75%. The decision was announced after the Indian markets were closed.
"Inflation was becoming a major concern for the central bank. We could see a knee-jerk reaction to this move in the stock market tomorrow," said Jayesh Shroff of SBI Asset Management.
The Bombay Stock Exchange's Sensex Index rose 296.07 points, or 1.99%, to 15,185.32. Here's a look at how some India-based American depositary shares traded in the U.S. on Wednesday. ...
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,328.89 | 1,102.47 | 2,211.69 | 35.46 |
Oil *
73.88
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UP
20.63
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UP
31.64
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0.59
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108.95
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+1.69%
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