BENGALURU: India’s main indexes advanced on Wednesday to near one-month highs, mirroring global stocks after softer-than-expected US inflation data strengthened hopes of an end to the rate-hiking cycle in the world’s largest economy.
The NSE Nifty 50 index settled 1.19% higher at 19,675.45, while the S&P BSE Sensex rose 1.14% to 65,675.93.
The Nifty 50 logged its best single day gain since March 31 and closed at the highest level since Oct. 18.
All 13 major sectors logged gains. High weightage financials added 0.92%. Information technology (IT) stocks jumped 2.59%. Tech Mahindra and Infosys were among the Nifty 50 gainers.
The surge in IT companies, which earn the bulk of their revenue from the US, came after softer-than-expected US consumer prices inflation data in October.
Meanwhile, rising hopes of an end to the interest rate hikes following the US inflation data also sparked a rally in stock markets, pushing the US Treasury yields lower.
“The cooling inflation in the US has reignited expectations that there would not be another rate hike in this cycle,” said Saurabh Jain, assistance vice president for research at SMC Global Securities.
Moreover, the strong earnings momentum and growth expectations would power a further rise in domestic equities, Jain added.
Comments
Comments are closed.