New Delhi, Sept. 16 -- The US Federal Reserve is set to announce policy verdict later today, Wednesday, 16 September with markets bracing for a fresh rate hike as inflation, bond yields and oil prices continue to climb. The decision comes at a sensitive juncture for global markets, with rising inflation, treasury yields and oil prices having strengthened the case for tighter monetary policy, while the escalating Middle East conflict has added another layer of uncertainty.

For Indian markets, the implications extend beyond equities, with the rupee, foreign flows, bond yields and gold also potentially responding to the Fed's decision and its guidance on what comes next.

The Federal Reserve is scheduled to announce its policy decision late...