India’s Nifty tops 25,000 points to record highs amid Fed-inspired global rally

BENGALURU: Indian shares hit all-time highs at the open on Thursday, with the Nifty breaching the 25,000-point mark, tracking a global rally after the US Federal Reserve Chair Jerome Powell hinted at a possible interest rate cut in September.

The NSE Nifty 50 rose 0.32% to 25,030.95 points as of 9:15 a.m. IST, while the S&P BSE Sensex added 0.25% to 81,949.68.

Asian markets joined the rally that started on Wall Street overnight after the Fed held interest rates steady as expected but Powell spoke of a “growing sense of confidence” that rate cuts could start in September, also as expected.

“It’s now almost certain that there will be a rate cut in the US in September, which is very good from an emerging markets perspective, in terms of foreign inflows,” said Pramod Gubbi, co-founder of Marcellus Investment Managers.

“For now, it means higher foreign inflows into India which will add to liquidity comfort.” All 13 major sectors logged gains.

Indian shares led higher by metal stocks; Fed commentary eyed

The broader, more domestically focussed small- and mid-caps rose about 0.5% each. Tata Steel rose 2% after posting a rise in quarterly profit.

Coal India gained 2.5% after it beat quarterly profit estimates on higher volumes and lower costs.

Bucking the trend, Infosys, India’s No.2 IT company, shed about 0.7% after it got a $4 billion tax bill related to services in some of its overseas branches.