Domestic markets are likely open on a negative note on Thursday, as global stocks turned weak following the US Fed’s hawkish stance. SGX Nifty at 18,687 indicates a gap-down opening as Nifty futures on Wednesday closed at 18,748.90.

US stocks tumbled after the Fed downshifted to a half-point rate hike pace while signalling that the ongoing increases would be appropriate to combat inflation.

Edward Moya, Senior Market Analyst, The Americas OANDA, said the Fed’s statement and projections were hawkish as the Federal funds rate was seen reaching 5.1 per cent, which was a half-point higher than the September forecast.

“The dot plot has shifted higher as the Fed appears to be pushing back on the market’s expectation that they will eventually cut rates at the end of next year. The Fed’s GDP forecast shows that they are committed to lifting rates to combat inflation, which will make policy very restrictive,” he added.

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Equities across Asia-Pacific markets are ruling marginally lower after the US Federal Reserve raised its benchmark interest rate by 50 basis points to the highest level in 15 years.

According to market observers, Indian market will remain range bound with low participation from traders. They further noted that sector rotation and stock-specific action will continue to dominate trade.