BENGALURU: Indian shares opened higher on Monday, mirroring other Asian peers after US Federal Reserve Chair Jerome Powell signalled that interest rate cuts are imminent.
The NSE Nifty 50 index was up 0.33% at 24,906.1 as of 9:15 a.m. IST.
The S&P BSE Sensex added 0.37% to 81,388.26.
The Nifty 50 has gained about 3% in the past seven sessions, its longest rally this year, helped by rising bets of a US rate cut in September and sustained domestic inflows.
On Friday, in highly anticipated comments at the Jackson Hole Economic Symposium, Powell said “the time has come for policy to adjust”.
A rate cut in the United States would bring inflows into emerging markets like India and could lend strength to a sustained rally in domestic equities, according to analysts.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.65%.
Wall Street equities ended sharply higher on Friday as Powell’s remarks solidified expectations of a rate cut at the Sept. 17-18 Fed meeting.
IT powers Indian shares to first weekly gain in three weeks
Twelve of the 13 major sectors in the Nifty 50 logged gains.
Information technology companies, which earn a significant share of their revenue from the United States, climbed 1.3%.
Among individual stocks, Ashoka Buildcon and KEC International jumped about 5% and 6%, respectively, after winning orders.
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