Indian shares open higher on Fed rate cut prospects

Indian shares inched higher at open on Wednesday, tracking gains across Asian markets on strengthening bets for a U.S. Federal Reserve rate cut later this month.

The Nifty 50 rose 0.14% to 25,181.95, while the BSE Sensex added 0.2% to 82,197.25, as of 9:15 a.m. IST.

Fifteen of the 16 major sectors advanced at open.

The broader mid-caps and small-caps gained 0.3% each.

On Tuesday, Fed Chair Jerome Powell noted that the U.S. labour market remained weak, while the economy appeared to be on a firmer footing, adding that the inflation outlook remains unchanged from September, when the central bank cut rates by 25 basis points.

Lower U.S. interest rates make emerging markets like India attractive to foreign investors as dollar and Treasury yields are typically lower.