Financial market is very much worried about the rate hike in US, probably this is going to come in coming December. But I think that is not going to change much of the things. Even Fed hikes rate in December it will be not so much, because we are forgetting one thing that interest rate in US is around zero so even they hike rate by 0.25-50% basis points (at most) in this year that will not be enough cause for Dollars to change their locations around the world especially markets have already discounted this coming rate hike in US.
For India, I think we have a shield against this Fed’s rate hike & that will be coming in form of up gradation in India’s Sovereign Ratings & also through Interest reduction by RBI. I do not know the exact time of revised Sovereign Rating probably around Budget, but market is expecting rate reduction by RBI in early December. The way SBI, the biggest bank in India reduces their bulk deposit rate, market is expecting something big from RBI.
India's demonetization plan is giving a big opportunity for short-term traders & coming events will be good for trading in Indian market up to mid December because things will be very flat around late December due to holidays.
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