No post-taper rally for India

|By:, SA News Editor

India had a relief rally on Wednesday after the RBi surprised by not hiking rates, but fell anew last night dropping 0.7% for its 7th decline in 8 sessions.

Leading among the blue chips were the rate-sensitive stocks, with ICICI (IBN) Bank off 3% and HDFC (HDB) Bank down 2.1%.

"One of the big questions post Fed's move is whether liquidity will continue flowing to emerging markets like India or not. If rates go up in U.S. then it will be risk for EMs," says Aneesh Srivastava, CIO at IDBI Federal Life Insurance.

IBN -5.4%, HDB -5.6% premarket

India ETFs: EPI, INDY, SCIF, INP, PIN, INDL, ICN, INR, INXX, INDA, SCIN, INCO, SMIN