Any potential hikes in the interest rates in the US, Japan and Europe are likely to adversely affect the fund flows from foreign institutional investors in Indian equity markets, which has already suffered in a big way from the huge FII outflows over the past couple of months, a market analyst said.
Market observers said despite absorbing the impact of recent serial bomb blasts in Mumbai and the recent hike in US Fed rates, it might not be very easy for the domestic market to face further upward revision of the interest rate worldwide.
