By Bharath Rajeswaran
BENGALURU (Reuters) -Indian shares rose on Thursday, led by information technology stocks, after minutes of the Federal Reserve’s latest policy meeting signalled that the U.S. central bank is strongly leaning towards a rate cut next month.
The NSE Nifty 50 index was up 0.11% at 24,796.7 as of 9:58 a.m. IST. The S&P BSE Sensex added 0.1% to 80,979.05.
Eight of the 13 major sectors advanced. The more domestically focussed small- and mid-caps rose about 0.5% each. High weightage financials rose 0.2%.
Information technology companies, which earn a significant share of their revenue from the U.S., gained 0.4%, after the Fed meeting minutes indicated the likelihood of a September rate cut.
“Markets would breathe a sigh of relief, as these anticipated cuts could prove a significant tailwind for economic growth and boost confidence,” said Dhawal Ghanshyam Dhanani, fund manager at SAMCO Mutual Fund.
These would be the first cuts since the pandemic, making it a “pivotal moment” for investors, especially in emerging markets like India, he added.
Investors will now look forward to Fed Chair Jerome Powell’s address on Friday, which could provide confirmation of a rate cut in September. [MKTS/GLOB]
If early gains hold, India’s benchmark indexes Nifty 50 and S&P BSE Sensex will log a six-session winning streak, which will be the joint-longest such run since December 2023.
Paytm and Zomato rose 2% and 1%, respectively. The online food delivery platform said it will buy the movie and events-ticketing businesses of Paytm for $244.2 million after market hours on Wednesday.
Shyam Metalics climbed 6.3% after UBS initiated coverage with a “buy” recommendation, citing visibility of strong earnings acceleration.
Interglobe Aviation jumped 3.6% after HSBC raised target price while reiterating “buy” and an upgrade to “buy” from “hold” by Jefferies.
($1 = 83.9140 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sherry Jacob-Phillips, Janane Venkatraman and Nivedita Bhattacharjee)
