BENGALURU: Indian shares are set for a strong open on Monday, tracking Asian peers as markets priced in earlier interest rate cuts in the United States and Europe.
India’s GIFT Nifty was up 0.84% at 19,451 as of 8:00 a.m. IST, over 200 points above the benchmark Nifty 50’s Friday close of 19,230.60.
Asian markets advanced, with the MSCI Asia ex-Japan index gaining nearly 1.5%.
Japan’s Nikkei rose 2.48% to 32,793,74, its highest since Sept. 21.
Wall Street equities rallied on Friday, while US 10-year Treasury yields fell to five-week lows after data showed that US jobs growth slowed more than expected in October.
The Fed’s rate pause on Nov. 1 had spurred a global market rally.
The odds of a 25 basis points rate cut by June 2024 rose to 81%, the CME FedWatch tool showed, and markets imply around an 80% probability the European Central Bank will be cutting rates by April.
Fed rate pause powers Indian shares to weekly gains
India’s blue-chips Nifty 50 and Sensex snapped a two-week losing streak on Friday, rising nearly 1% for the week.
Foreign institutional investors remained net sellers on Friday, offloading 124.3 million rupees ($1.5 million) of shares on a net basis.
Domestic institutional investors bought shares worth 4.03 billion rupees.
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