BENGALURU (Reuters) -Indian shares rose to record highs at the open on Monday, on expectations of a rise in foreign inflows after the Federal Reserve rate cut last week, which has boosted risk-on sentiment among investors.
Both the benchmarks – the Nifty 50 index and the S&P BSE Sensex – rose about 0.3% each to hit record highs, as of 9:22 a.m. IST.
The indexes have scaled all-time peaks daily after the Fed cut rates by 50 basis points on Sept. 18.
“Bulls got a shot of steroids from the Fed when it cut interest rates… more than the rate cut, it was Fed’s optimistic commentary that’s lifting markets sharply,” VK Vijayakumar, chief investment strategist at Geojit Financial Services, said.
“The signal from Fed is that inflation in the U.S. is under control and economy is unlikely to dip into recession, a message that’s positive for global equities and emerging markets like India.”
Twelve of the 13 major sectors logged gains. The broader, more domestically focussed small- and mid-caps rose 0.5% and 0.2%, respectively.
Asian shares firmed at the open, with the MSCI Asia ex-Japan index trading 0.3% higher, helped by China trimming its repo rate to support its economy. [MKTS/GLOB]
($1 = 83.4680 Indian rupees)
(Reporting by Bharath Rajeswaran and Manvi Pant in Bengaluru; Editing by Mrigank Dhaniwala)
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