New Delhi, Sept. 25 -- The US Federal Reserve's latest 25-basis-point interest rate hike has yet to be fully priced in by Dalal Street. While modest on paper, the move signals the start of a broader tightening cycle from the central bank.

Here is a closer look at how higher US rates could ripple through the Indian market, and three rate-sensitive stocks worth watching.

Persistent inflation, still hovering above the Federal Reserve's 2% target, was the primary trigger for the move.

At the same time, the US economy continues to show resilience, with steady GDP growth and strong consumer spending absorbing the shock of high oil prices.

Confident that a recession is not imminent, the central bank prioritized price stability, resulting in ...