Indian markets are set to open higher on Tuesday, with traders anticipating incremental gains ahead of the likely US Federal Reserve rate cut expected a day later. At 07:58 am, the GIFT Nifty stood at 25,476.5 points.
Both the Nifty 50 and the S&P BSE Sensex hit record highs on Monday, boosted by rising metal stocks and expectations of a supportive Federal Reserve policy. “Investors remain cautiously optimistic ahead of the Federal Reserve policy decision on Wednesday, which could shape near-term trends in domestic equities,” said Vikram Kasat, director, advisory, Prabhudas Lilladher.
The odds of an aggressive 50 basis point interest rate cut have risen to 67% from 50% following media reports hinting at deeper easing measures. Buying by foreign institutional investors, boosted by the Federal Reserve’s expected rate cut, is expected to drive further gains in Indian stocks.
Asian markets also opened higher, with the MSCI Asia ex-Japan index gaining 0.4 percent. Meanwhile, U.S. markets were mixed: While the Dow Jones Industrial Average rose 0.55 percent, the Nasdaq fell 0.52 percent, led by a drop in technology stocks.
Foreign institutional investors sold shares worth Rs 1,635 crore on Monday, while domestic institutional investors bought shares worth Rs 754 crore, data from the National Stock Exchange showed.
Actions to take into account
Power of the torrent: Signed an agreement with the Gujarat government for a 5 GW hybrid solar, wind or solar-wind project.
Panacea Biotechnology: Reached a settlement with Sanofi India, resolving a marketing dispute over alleged patent infringement.
Electric Wave: It received a “buy” rating from Goldman Sachs when coverage was initiated.
(With contributions from Reuters)
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