Indian Markets Edge Higher on Hopes of U.S. Rate Cut
India’s benchmark indices opened Monday on a positive note, driven largely by gains in information technology stocks amid rising expectations of a U.S. Federal Reserve rate cut in December. The Nifty 50 climbed 0.19% to 26,118.05, while the BSE Sensex rose 0.15% to 85,360.30 by mid-morning. Twelve of the 16 major sectoral indices advanced, even as small-cap and mid-cap indices traded flat.
IT stocks led the uptrend, gaining 1.5%, after New York Fed President John Williams signaled that interest rates could fall “in the near term.” Analysts noted that lower U.S. rates support growth in key export markets for Indian IT firms, while also boosting the appeal of emerging markets like India. With no significant domestic data releases until Friday’s GDP report, markets are expected to respond closely to U.S. inflation cues, rate commentary, foreign flows, and currency movements.
Broader sentiment remains upbeat as benchmarks approach record highs, supported by easing inflation and improving earnings, according to HSBC. Among individual movers, Tech Mahindra gained 3% on renewed confidence in a fiscal 2027 turnaround, while Shaily Engineering Plastics and Shyam Metalics rose after positive brokerage coverage. Hindustan Aeronautics, however, slipped 3.2% following a Tejas fighter jet crash at the Dubai Airshow.
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