Indian stocks and the rupee fell sharply today, after US Federal Reserve minutes boosted the case for higher US interest rates.Indian stocks and the rupee fell sharply today, after US Federal Reserve minutes boosted the case for higher US interest rates. The Sensex fell over 400 points while the rupee inched toward 67/dollar.

Here are 10 updates:

1) Minutes of the Fed’s September meeting showed the decision to keep rates on hold was a close call, with three members voting to raise. Odds of an increase in US borrowing costs by the end of the year remain around 68 per cent, according to Fed funds futures, up about six percentage points from a week ago.

2) “A rate hike by the Fed looks imminent,” Paras Bothra, vice president of equity research at Ashika Stock Broking.

3) Analysts also say that the Fed rate outlook and the US elections are the short-term worries and will keep the Indian market in check.

4) The rupee fell as much as 40 paise today at 66.93/dollar at day’s low.

5) Global funds have bought $7.8 billion of Indian shares this year, more than twice the $3.3 billion they invested in 2015.

6) A rate hike in the US could make dollar assets more attractive, thus impacting the fund flows into emerging markets.

7) The inflows have helped Indian equities rebound 21 per cent from a low reached in February.

8) Investors are cautious ahead of the September-quarter results season. India’s biggest outsourcer TCS will report its Q2 earnings later day.

9) Analysts don’t expect India Inc’s to report blockbuster earnings for the September quarter but some see an improvement over the previous quarter.

10) Despite expectations of an improvement in India Inc’s Q2 earnings performance, analysts have voiced concern over valuation. The Sensex is valued at 16.4 times projected 12-month earnings, while the MSCI Emerging Markets Index trades at a multiple of 12.3, data compiled by Bloomberg show.