Indian Markets Rise on Fed Rate Cut Hopes, IT Stocks Lead Gains
Indian equities climbed in early trade on Wednesday, mirroring broader gains across Asian markets as growing expectations of a U.S. Federal Reserve rate cut later this month lifted investor sentiment. The Nifty 50 rose 0.28% to 25,216.2, while the BSE Sensex gained 0.20% to 82,192.33 as of 9:52 a.m. IST. Fifteen of the sixteen major sectoral indices were in the green, with mid-cap and small-cap stocks also advancing 0.7% and 0.3%, respectively.
Optimism was buoyed after Fed Chair Jerome Powell said the U.S. economy was on a firmer footing despite a weak labour market, while inflation expectations remained steady. His comments reinforced the likelihood of another rate cut and a possible pause in balance sheet reduction, which market experts said could fuel bullish sentiment. Lower U.S. rates typically make emerging markets like India more appealing to foreign investors by reducing the attractiveness of dollar assets.
Information technology shares led the rally, with Persistent Systems surging 6.7% after reporting higher revenue and profit for the September quarter. Analysts noted that IT sector earnings have largely met or exceeded expectations this season, adding confidence among investors. Among other notable gainers, ICICI Lombard General Insurance jumped 7% after posting a profit increase for the same period.
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