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PrintINDIA STOCKS-Fed rate cut boosts Indian shares to record high
BY Reuters | ECONOMIC | 09/18/24 11:58 PM EDT(Updates at 9:22 a.m. IST)
By Bharath Rajeswaran
BENGALURU, Sept 19 (Reuters) - Indian shares rose to a record high in early trade on Thursday, led by information technology stocks, after the U.S. Federal Reserve started its monetary easing cycle with a large 50-basis-point rate cut.
The Nifty 50 index was up 0.76% at 25,570.6 points, while the S&P BSE Sensex rose 0.82% at 83,647.96, as of 9:22 a.m. IST.
The bold and surprise move by the Fed is positive for equity markets, said Dhawal Ghanshyam Dhanani, fund manager at SAMCO Mutual Fund.
The rate cut will boost Indian IT companies' earnings as it should support the U.S. economy, three analysts said.
IT companies, which earn a significant share of their revenue from the U.S., rose 1.6% and were the top sectoral gainer.
All 13 major sectors logged gains. The broader, more domestically focussed small- and mid-caps rose about 0.6% each.
Other Asian markets also gained, with the MSCI Asia ex-Japan index rising 0.9%. (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Mrigank Dhaniwala)
