Global mkts fully pricing in Fed hike to 5.5%; Indian equities at risk: UBS

India, according to them, is among the more sensitive markets to US rates, and demonstrates the most sensitivity to local rates given higher influence of domestic flows into the market

Indian equity markets appear expensive and face a downside risk if the US Federal Reserve (US Fed) hiked rates to 6 per cent to tame inflation, wrote analysts at UBS in a recent note. Global equity markets at the current levels, UBS said, are fully pricing in three further Fed rate hikes to 5.5 per cent.

India, according to them, is among the more sensitive markets to US rates, and demonstrates the most sensitivity to local rates given higher influence of domestic flows into the