MUMBAI: Indian shares rose on Friday, tracking their Asian peers, after soft US inflation data raised expectations for further Federal Reserve easing next year.
The Nifty 50 and the BSE Sensex added 0.6 percent to 25,959.2 and 84,978.05, respectively, as of 9:59 a.m. IST. All 16 major sectors traded higher. The broader mid-caps and small-caps each gained 0.5 percent and 0.7 percent.
Asian markets rose 0.6 percent after the US inflation data, while the Bank of Japan raised interest rates to levels unseen in three decades, as widely expected. US consumer prices rose 2.7 percent year-on-year in November, below a forecast of a 3.1 percent increase.
A lower US policy rate could spur stronger foreign inflows into India, bolster the rupee and improve liquidity, said Prashanth Tapse, senior vice president (research) at Mehta Equities. Investor sentiment was also lifted by foreign portfolio investors turning buyers in India after an aggressive sell-off earlier this month.