India’s equity benchmarks opened higher on Wednesday, tracking Asian peers on rising expectations of an imminent Federal Reserve rate cut, with information technology and metal shares leading the gains.
The Nifty 50 rose 0.32% to 25,965.1 and the BSE Sensex was up 0.32% at 84,859.81 as of 9:19 a.m. IST.
All 16 major sectors advanced at the open. The broader small-caps and mid-caps rose about 0.7% and 0.5%, respectively.
Other Asian markets rose 1%, tracking an uptick in Wall Street equities after data showed U.S. retail sales rose less than expected and consumer confidence weakened, bolstering expectations of a Fed rate cut in December.
Comments from two Fed policymakers favouring a December rate cut also aided sentiment.
Lower interest rates in the U.S. make emerging markets such as India more attractive for foreign investors.
IT companies, which earn a major share of their revenue from the U.S., rose 0.7%. Metals gained 1% as U.S. rate cut hopes aided demand outlook.