BENGALURU (Reuters) – Indian shares were set to open at record highs on Monday tracking gains in Asian markets, as investors, already enthused by the US Federal Reserve’s half-point rate cut, were gearing up for more easing by the US central bank.
The GIFT Nifty was at 25,939 points, as of 8:01 a.m. IST, indicating that the NSE Nifty 50 will open higher than its Friday close of 25,790.95.
The benchmark indexes logged fresh all-time highs on Friday and registered weekly gains on hopes of the U.S. economy achieving a soft landing – a scenario where inflation cools without triggering a recession.
Asian shares firmed at open, with the MSCI Asia ex-Japan index trading 0.1% higher, helped by China trimming its repo rate to support its economy. [MKTS/GLOB]
After an outsized 50 basis point rate cut on Wednesday, markets expect the Fed to cut by another 50 bps on November 7, the odds of which happening in the next Fed policy meeting is at 50.3%,according to CME FedWatch.
Indian shares are trailing only Wall Street’s Nasdaq and S&P 500 as top-performing indexes this year, with analysts expecting the rally to extend into 2025.
Foreign investors net bought shares worth 140.64 billion rupees ($1.68 billion) in Indian equities in the previous session, while domestic investors net sold shares worth 44.27 billion rupees, exchange data showed.
STOCKS TO WATCH
** Vodafone Idea signs $3.6 billion network equipment deal with Nokia, Ericsson and Samsung.
** Bharat Heavy Electricals gets order worth 61 billion rupees from NTPC
** Glenmark Pharma says U.S. drug regulator closed inspection at Aurangabad facility with zero observations.
($1 = 83.4680 Indian rupees)
(Reporting by Bharath Rajeswaran and Manvi Pant in Bengaluru)
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