Moreover, ending months of speculation, and for the first time in nearly a decade, the US Federal Reserve's rate-setting Federal Open Market Committee (FOMC) raised its Federal Funds Rate by 25 basis points from the 0-0.25% range to a target of 0.25-0.5%.
The historical move, anticipated for over a year, marks the exit of the zero interest rate policy, which had been into place in the wake of the financial crisis of 2008.
The decision comes on the back of some particularly strong macroeconomic data emerging out of the world's largest economy: the unemployment rate recently hit a seven-year low while jobs growth, too, has been steady.
This move gives some indication that probably the wounds of the US economy from the 2007-2009 financial crisis are gone and it's finally more or less on its own, without any crutches.
This is positive especially for India IT, as IT budgets of US companies will expand now and demand will grow.
Buy the shares of Rolta Ltd at the CMP of Rs.95.50 for short term targets of Rs.104-111.
Note: Anticipating a rate hike Rolta Ltd was recommended to the Paid Group members yesterday at around Rs.92.75.