BENGALURU, Sept 16 (Askume) – Indian shares hit a record high on Monday, led by gains in metal stocks on prospects of a U.S. interest rate cut, while Bajaj Housing Finance (BAJO.NS) more than doubled its issue price in first trade.
The NSE Nifty 50 (.NSEI) rose 0.11% to 25,383.75, while the S&P BSE Sensex (.BSEN) rose 0.12% to 82,988.78.
Both benchmarks were up about 0.3%, hitting record highs.
Nine of the 13 major sectors recorded gains. Metal (.NIFTYMET) rose 0.61% on a weaker dollar and rising expectations that the Federal Reserve will cut interest rates by 50 basis points later this week.
Analysts said a rate cut would support demand for physical metals and put pressure on the dollar. A weaker dollar makes the metal cheaper for holders of other currencies, such as India.
Swapnil Agarwal said: “If the rate cut is in response to concerns about an economic slowdown, the positive market impact may be weak. Conversely, if the Fed cuts rates due to low inflation and stable growth prospects, the market may rally further.” , director at New Delhi-based mutual fund dealer VSRK Capital.
Energy stocks (.NIFTYENR) led by Adani Green Energy rose 0.8%(ADNA.NS) surged 8% after winning a bid with Adani Power (ADAN.NS) to supply 6,600 megawatts of renewable and thermal power .I have been working in Maharashtra, India for 25 years.
Adani Power gained 5.13%.
Broader, more domestically focused small-cap stocks (.NIFSMCP100) and mid-cap stocks (.NIFMDCP100) rose 0.2% and 0.4%, respectively.
Shares of Bajaj Housing Finance (BAJO.NS) debuted at more than double the issue price of Rs 70 and closed 136% higher.
Investors placed bids on the company’s IPO shares 64 times, the highest price ever in 2024 .
Competing stocks of housing finance companies such as LIC Housing Finance (LICH.NS) and PNB Housing Finance (PNBH.NS) declined around 6% and 6.6% on the day.
Consumer stocks (.NIFTYFMCG) fell 0.72%, falling for a second consecutive session after hitting a record high last week.
