BENGALURU, Sept 19 (Askume) – Indian shares hit a record high on Thursday, led by information technology stocks, after the Federal Reserve cut interest rates by half a percentage point, kickstarting a monetary easing cycle.
As of 10:06 am IST, the Nifty 50 index (.NSEI) was up 0.62% at 25,533.6 points, while the S&P BSE Sensex (.BSEN) was up 0.68% at 83,515.55 points.
“While the rate cut was expected, the 50 basis points cut is a positive surprise and will boost domestic equities,” said Raghavendra Nath, managing director, Ladderup Wealth Management.
The Fed’s dot plot also shows that the central bank expects to cut interest rates again by half a percentage point in 2024.
Three analysts said easing interest rates would boost foreign investment in emerging markets like India and also support profit prospects of domestic IT companies.
IT companies that generate most of their revenue from the United States (.NIFTYIT) rose 1% during the session.
Twelve of the 13 major industries recorded growth. The broader, more domestically focused small-cap sector (.NIFSMCP100) and mid-cap stocks (.NIFMDCP100) gained about 0.4% each.
Other Asian markets also rose, with the MSCI Asia ex-Japan index (.MIAPJ0000PUS) rising 0.9%.
Among stocks, state power producer NTPC.NS gained 4 percent after it filed for a $1.2 billion initial public offering for its green energy unit . It is the top gainer on the Nifty 50.
Bajaj Auto (BAJA.NS) rose 2% as HSBC maintained a “buy” rating and raised its target price on the company, citing earnings resilience.
Non-bank lender Aditya Birla Capital (ADTB.NS) rose 3% after the Reserve Bank of India (RBI) approved its merger with its subsidiary Aditya Birla Finance .
Garden Reach Shipbuilders (GRSE.NS) rose 3% after securing orders worth $54 million.
Shares of FirstCry parent BrainBees Solutions (BRAE.NS) rose 3% after BofA Securities and Morgan Stanley issued “buy” ratings on the company, citing strong profit prospects.
