New Delhi, Sept. 17 -- US Fed rate hike impact on Indian banking stocks: The Federal Reserve's latest interest-rate decision is expected to have implications for Indian markets, with the FOMC's policy outcome likely to influence the performance of Indian banking stocks.

The US Federal Reserve raised its benchmark interest rate by 25 basis points on Wednesday, taking the federal funds rate to a target range of 3.75%-4%. Policymakers also signalled the possibility of another rate hike later this year.

The rate increase came against the backdrop of persistent inflation, partly fuelled by continuing tensions in the Middle East, while the labour market remained relatively stable. The move marked the central bank's first rate hike in more tha...