BENGALURU: Indian shares rose on Wednesday, in tandem with global markets, on easing U.S. rate concerns following further dovish comments by key Federal Reserve officials and stability in oil prices.
The NSE Nifty 50 index was up 0.65% at 19,817.90 as of 9:34 a.m. IST, and the S&P BSE Sensex rose 0.67% to 66,515.05.
Global equities advanced after Atlanta Fed Bank President Raphael Bostic said the central bank does not need to raise rates further and that the Fed does not expect a recession.
Indian shares bounce back on easing US rate concerns
The remarks, which followed dovish comments by other key Fed officials on Monday, eased worries over further rate hikes.
Brent crude futures hovered below $88 per barrel on Wednesday, although analysts noted that the military conflict in the Middle East is a fluid situation.
“It is important to appreciate the fact that even in the midst of the West Asian crisis, markets are resilient, globally,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
“The fundamental support to the market comes from the resilience of the U.S. economy, the declining U.S. bond yields and the hope that the Israel-Hamas conflict will remain a localised crisis.”
Meanwhile, CLSA increased its exposure to Indian equities on prospects of strong economic growth, profitability and credit demand.
All the 13 major sectoral indexes logged gains on the day. High-weightage financials rose 0.7% and information technology added 0.9%.
Tata Consultancy Services, the country’s top IT company, kicks off the earnings season later in the day when it reports quarter results. It is also considering a share buyback.
Realty stocks added over 1%, extending their rally following strong business updates from key constituents and the central bank’s rate pause on Friday.
Bank of Baroda fell 2% after the Reserve Bank of India barred the state-owned lender from adding customers to its mobile app.
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