India, Sept. 17 -- Indian benchmark indices traded with volatility on Thursday, September 17, after the US Federal Reserve raised interest rates by 25 basis points. The Sensex and Nifty 50 initially faced pressure but later recovered as investors bought banking and financial stocks following the recent market sell-off. At around 11:12 am, the Sensex was down 94.43 points, or 0.13%, at 74,242.02, while the Nifty was almost flat at 23,216.65. Earlier in the session, the Sensex had moved higher by more than 170 points, showing the lack of a clear direction in the market.

Why Is the US Fed Rate Hike Important for Indian Markets?

The US Federal Reserve increased the policy rate by 0.25% to 3.75-4%, the first such increase in three years. The...