BENGALURU (Reuters) – Indian shares opened higher on Thursday, led by information technology stocks after the minutes of the Federal Reserve’s policy meeting signalled that the U.S. central bank is strongly leaning towards a rate cut next month.
The NSE Nifty 50 index was up 0.18% at 24,808.95 as of 9:23 a.m. IST. The S&P BSE Sensex added 0.17% to 81,033.29.
Ten of the 13 major sectors advanced. Information technology companies, which earn a significant share of their revenue from the U.S., gained 0.6%, after the Fed meeting minutes indicated the likelihood of a September rate cut.
Investors now await Fed Chair Jerome Powell’s address on Friday for confirmation that the U.S. central bank is about to start loosening credit conditions from September. [MKTS/GLOB]
If early gains hold, India’s benchmark indexes Nifty 50 and S&P BSE Sensex will log a six-session winning streak.
Analysts expect domestic equities to remain buoyant, but see limited potential for significant upside due to elevated valuations.
Shares of Paytm and Zomato rose 2.7% and 1.5%, respectively. The online food delivery platform said it will buy the movie and events-ticketing businesses of Paytm for $244.2 million after market hours on Wednesday.
($1 = 83.9140 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sherry Jacob-Phillips and Janane Venkatraman)
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