BENGALURU, Sept 16 (Askume) – Indian shares hit record highs on Monday, supported by precious metals amid a weak dollar, while Bajaj Housing Finance (BAJO.NS) fell below its issue price after last week’s initial public offering (IPO) more than doubled in price.
As of 10:08 am, benchmark indices NSE Nifty 50 (.NSEI) and S&P BSE Sensex (.BSESN) were both up 0.3%, hitting record highs.
Twelve of the 13 core industries recorded growth. Metals (.NIFTYMET) rose 1% as a weaker dollar made dollar-denominated commodities more affordable for overseas buyers.
Expectations of improving demand and Chinese stimulus measures have also pushed base metal prices higher in the last few sessions.
The energy index (.NIFTYENR) rose nearly 1%, while the consumer index (.NIFTYFMCG) , which has outperformed the benchmark Nifty 50 since the beginning of July, fell 0.4%.
Broader, more domestically focused small-cap (.NIFSMCP100) and mid-cap (.NIFMDCP100) stocks gained around 0.4%.
Shares of Bajaj Housing Finance (BAJO.NS), the country’s second-largest home loan finance company in terms of assets under management (AUM).Its price starts at Rs 70, which is more than double the launch price.
Investors paid 64 times the number of shares offered in the company’s IPO, the highest bid so far in 2024 .
Institutional equity analysts at Centrum said, “Markets are optimistic on hopes of improved festive demand due to good progress on the monsoon front and expectations of US interest rate cuts.”
Both benchmarks had ended flat in the previous session but recorded their best weekly performance since late June ahead of a possible US interest rate cut on Wednesday.
The probability that the Fed will cut interest rates by 50 basis points rose to 59% from 30% a week ago.
Two traders said a sharp 50 basis points cut in interest rates could bring in more foreign investment and boost domestic stocks.
Among individual stocks, Indian rice companies KRBL (KRBL.NS) and LT Foods (LTOL.NS) rose 5% after the government removed the minimum export price for aromatic rice .
Shares of real estate company Macrotech Developers (MACE.NS) rose 4% after Nomura issued a “buy” rating, citing “solid profit potential.”
