BENGALURU, Sept 12 (Askume) – Indian shares rose on Thursday as strong U.S. inflation data raised the possibility of a 25 basis point interest rate cut by the Federal Reserve, with metals and IT stocks leading the gains on hopes of increased foreign capital inflows into the domestic market. stock market.
As of 9:23 am (IST), the Nifty 50 index (.NSEI) was up 0.51% at 25,045, while the S&P BSE Sensex (.BSEN) was up 0.45% at 81,885.23.
All 13 major industries recorded growth. IT companies (.NIFTYIT) , which earn most of their revenue from the United States, rose 0.9%.
US consumer prices rose slightly in August , but underlying inflation showed some stability, according to data released on Wednesday.
According to CME FedWatch, the probability of the Federal Reserve cutting interest rates by 25 basis points on September 18 rose to 85% from 66% the previous day, while the probability of a more substantial rate cut of 50 basis points fell from 34% to 15%.
Saurabh Jain, assistant vice president, retail equity research, SMC Global Securities, said, “The US interest rate cut is likely to boost economic growth, encourage foreign investment and increase discretionary spending, which will lead to a general increase in inflation.” Beneficial for domestic equities, especially information technology, pharmaceutical companies.
The pharmaceuticals index (.NIPHARM) rose about 0.9%.
“However, with the outlook for a quarter-point rate cut and corporate earnings showing signs of moderation, the benefits from the Fed’s rate cut next week could be limited,” Jain said.
Asian markets opened with gains today, with the MSCI Asia ex-Japan index (.MIAPJ0000PUS) rising 1.4% and Wall Street stocks rising overnight.
Elsewhere, the metal index (.NIFTYMET) rose 1.5%, with Tata Steel (TISC.NS) gaining 3% after the company signed a 500 million pound grant funding deal with the British government.
Small-cap stocks (.NIFSMCP100) and mid-cap stocks (.NIFMDCP100), which focus mainly on domestic stocks, rose 0.6% and 1%, respectively.
(1 USD = 83.9830 Indian Rupees)
(Paragraph 4 of this story has been corrected to read Wednesday, not Thursday)
