BENGALURU (Reuters) – Indian shares are set to open higher on Tuesday, with traders expecting incremental gains ahead of the U.S. Federal Reserve’s expected rate cut a day later.
The GIFT Nifty was at 25,476.5 points, as of 07:58 a.m. IST, indicating the NSE Nifty 50 will open above Monday’s closing level of 25,383.75.
Both the benchmarks Nifty 50 and S&P BSE Sensex hit record highs on Monday, underpinned by rising metal stocks on a favourable U.S. rate cut outlook.
“Investors remain cautiously optimistic ahead of the Fed’s policy decision due on Wednesday, which could influence the short-term trends in domestic equities,” said Vikram Kasat, head of advisory at PL Capital, Prabhudas Lilladher.
The odds of an aggressive 50 basis-point rate cut on Wednesday rose to 67% from 50%, after a slew of media reports revived the prospect of more aggressive easing.
The rise in domestic equities is expected to be driven primarily by foreign institutional investors (FII) buying after the anticipated Fed rate cut, Kasat said.
India’s benchmark indexes are likely to remain little changed ahead of the Fed’s likely rate cut, two traders said.
Asian markets opened higher, with the MSCI Asia ex-Japan index rising 0.4%. Most Wall Street equities logged gains overnight ahead of Fed rate decision. [MKTS/GLOB]
STOCKS TO WATCH
** Torrent Power enters a sign with the government of Gujarat for execution of 5 GigaWaatt solar, wind or solar-wind hybrid project.
** Panacea Biotech reaches a settle agreeement with Sanofi India to settle a marketing dispute over alleged patent infringement.
** Ola Electric gets a “buy” rating from Goldman Sachs, as it initiates coverage
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Nivedita Bhattacharjee)
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