Asian stock markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 0.4% while the Hang Seng is down 0.1%. The Shanghai Composite is trading down by 0.3%. Meanwhile, the benchmark S&P 500stock index ended little changed in a choppy trading session on Tuesday as the possibility of a partial US government shutdown raised investor jitters ahead of a highly anticipated meeting of the Federal Reserve.

Back home, India share markets opened on a positive note. The BSE Sensex is trading up by 102 points while the NSE Nifty is trading up by 39 points. The BSE Mid Cap index opened the day up by 0.5% while BSE Small Cap index opened up by 0.4%.

Barring IT stocks, all the sectoral indices have opened the day in green with energy stocks and FMCG stocks leading the gainers.

The rupee is currently trading at Rs 69.98 against the US$.

The Indian rupee on December 18 rallied by a whopping 112 paise, its best single-day gains in over five years, to settle at 70.44 against the US dollar.

The rally came on the back of softening crude oil prices eased concerns over India's current account deficit expansion. According to commerce ministry data, India's trade deficit came down to US$ 16.7 billion in November 2018 from US$ 17.1 billion in October this year.

The US Federal Reserve's monetary policy decision is expected to be out today. As per the reports, the market is expecting another rate hike when the FOMC meets for the last time this year, although traders will be more interested in the Federal Reserve's dot plot and the outlook for the American economy next year. Besides, the American currency's weakness against its major rivals globally helped the rupee further its gains.

How does a US interest rate hike affect Indian investors?

The instant effect is foreign money moving out of India's vaults. This means a slight correction in the share market in India, albeit temporarily.

While this might provide a good buying opportunity in long-term stocks, the main thing to look forward would be capex and earnings trends.

In the end, Indian investors are better off staying informed about the corporate earnings revival than Fed rate hikes.

It is also worthwhile to note that the Indian stock market has done relatively well during the last period of rate hikes by the US Fed.

Take 2003-2006 for example...

Between 2003 and 2006, the US Fed rate moved from 1% to 5.25%.

Sensex's Staggering Performance Despite the Fed Rate Hikes

Despite this, the Sensex rose from 3,500 levels to more than 10,000 during the same period. This increase was supported by strong earnings growth.

So, in the long term, rate hikes (triggered by economic growth) have proved good for the Indian markets.

Moving on to the news from the pharma space. As per an article in a leading financial daily, Glenmark Pharmaceuticals has forayed into the branded dermatology segment in the United States.

The branded portfolio for the US market will be developed and commercialized by Glenmark Therapeutics Inc., USA, which is a wholly owned subsidiary of Glenmark Holding, SA.

This represents an important step in the company's long-term strategy to build a robust branded business in the US, alongside the company's existing and successful generics business.

In support of this new business, Glenmark Therapeutics recently acquired the rights to seven branded dermatology products from Exeltis USA, Inc. Reportedly, the cumulative sales of the seven acquired brands were US$ 9 million.

All the acquired products are currently approved and marketed in the US, giving Glenmark Therapeutics an immediate entry into the topical branded products segment. In addition, Glenmark Therapeutics intends to launch other dermatology products over the next 12 months.

According to IQVIA sales data for the 12-month period ending October 2018, the topical branded dermatology products market in the US is estimated to be valued at US$1.9 billion and has been growing at a CAGR of 6.6% over the last five years, the reports noted.

Glenmark Pharma share price opened up by 0.1%.