BENGALURU: India’s blue-chip indexes pared early gains on Monday, as global stocks’ rally stalled over doubts about the expected US rate cut in March 2024, ahead of a key US inflation reading and central bank policy decisions.
The NSE Nifty 50 index rose 0.13% to 20,997.10, while the S&P BSE Sensex settled 0.15% higher at 69,928.53.
Both indexes gained about 0.3% each during the session, with the Sensex surpassing 70,000 levels for the first time in intraday trade. Asian markets declined. The MSCI Asia ex-Japan index lost 0.33% on worries about the US rate outlook on the back of stronger-than-expected jobs data and deflationary concerns in China.
The US consumer price inflation data and Federal Reserve’s rate decision, both due later in the week, are likely to influence the near-term interest rate outlook and market trajectory, two analysts said.
“India represents the single best choice in both Asia ex-Japan and emerging market universes,” analysts at Macquarie said in a note, citing strong domestic fund flows, steady earnings and return of foreign fund inflows as key supporting factors for the rally in Indian markets.
Pharma stocks fell 0.76%, led by a 5.04% decline in Dr. Reddy’s Laboratories after its facility in Hyderabad city received observations from the US’ drug regulator. The stock was also the top Nifty 50 loser. Energy gained 0.40%, supported by the ongoing drop in crude oil prices.
Comments
Comments are closed for this article.