BENGALURU: Indian shares opened higher on Friday, as bets of a rate cut in the world’s largest economy next month boosted information technology stocks after heavyweight Tata Consultancy Services beat quarterly revenue estimates.
NSE Nifty 50 rose 0.3% to 24,387.95 as of 9:15 a.m. IST, while the S&P BSE Sensex added 0.25% to 80,093.62 points.
The IT index rose 1.6%, with all its 10 constituents logging gains.
Tata Consultancy Services, India’s top IT services company, which reported a revenue beat on Thursday, rose about 2%.
TCS’s return to growth in key verticals and markets, and net hiring at a seven-quarter high are “emerging signs of revival”, analysts at Jefferies said, upgrading the stock to “buy” from “hold”.
Indian shares end muted on caution ahead of earnings
US consumer prices unexpectedly falling in June boosted odds of a 25 basis point US rate cut to 85%, according to CME FedWatch.
Federal Reserve Chair Jerome Powell had said earlier in the week that “more good data” would build the case for interest rate cuts.
India’s retail inflation is expected to be close to 5% in June, in line with Reserve Bank of India’s expectations but still above 4% target to start talking about lowering interest rates, central bank chief Shaktikanta Das told local media on Thursday.
The data is due after market.
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