By Bharath Rajeswaran
BENGALURU (Reuters) -Indian shares hit record highs on Monday, underpinned by rising metal stocks on a favorable U.S. rate cut outlook, while Bajaj Housing Finance more than doubled over the issue price in its debut trade.
The NSE Nifty 50 rose 0.11% to 25,383.75, while S&P BSE Sensex gained 0.12% to 82,988.78.
Both the benchmarks rose about 0.3% to hit all-time highs during the session.
Nine of 13 major sectors logged gains. Metals gained 0.61%, buoyed by a softer U.S. dollar amid rising expectations of a 50 basis point interest rate cut by U.S. Federal Reserve, later this week.
A rate cut would support physical metals demand, as well as put pressure on the dollar, according to analysts. A softer U.S. dollar makes metals cheaper for holders of other currencies, like India. [MET/L]
“If the rate cut is in response to concerns about a slowing economy, the positive market effect could be muted. Conversely, if the Fed is cutting rates due to low inflation and a stable growth outlook, markets may rally further,” said Swapnil Aggarwal, director at New Delhi-based mutual fund distributor VSRK Capital.
Energy stocks rose 0.8%, led by an 8% jump in Adani Green Energy after the company, along with Adani Power won a bid to supply 6,600 MW of renewable and thermal power to India’s Maharashtra state for 25 years.
Adani Power rose 5.13%.
The broader, more domestically focussed small- and mid-caps rose 0.2% and 0.4%, respectively.
Shares of Bajaj Housing Finance debuted at more than double the offer price of 70 rupees, and settled 136% higher.
Investors had bid for 64 times the shares on offer in the company’s IPO, the hottest so far in 2024.
Rival housing finance companies such as LIC Housing Finance, PNB Housing Finance fell about 6% and 6.6%, on the day.
Consumer stocks fell 0.72%, logging losses for second session after hitting record high levels hit last week.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sherry Jacob-Phillips and Nivedita Bhattacharjee)
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