The Indian stock market finished Tuesday’s trading session higher, with technology stocks doing most of the heavy lifting amid increased bets on a US Federal Reserve rate cut in its upcoming policy meeting.
Pharma stocks also contributed to the gains, while a resurgence in consumer goods stocks supported the frontline indices. The Nifty 50 rose 0.39% to close at 24,868, while the S&P BSE Sensex advanced 314 points, or 0.39%, to 81,101.
Broader markets also ended higher, with the Nifty Midcap 100 and Nifty Smallcap 100 gaining 0.18% and 0.34%, respectively.
Sector-wise, Nifty IT emerged as the top gainer, rising 2.76%, followed by Nifty Pharma and Nifty FMCG, which added 0.86% and 0.77%, respectively. On the losing side, Nifty Realty was the top laggard, slipping 0.30%, followed by Nifty Oil & Gas and Nifty PSU Bank, which declined 0.30% and 0.13%, respectively.
Last week, a surprisingly weak US jobs report added to hopes that the path for interest rates is lower. However, any unexpected strength in inflation readings could disrupt that outlook. The August producer price index report is due Wednesday morning, while the consumer price index will be released on Thursday.
The US Labor Department will also publish a preliminary revision estimate of employment levels for the 12 months through March later in the day. Markets are now pricing in an over 11% probability that the Fed could lower rates by 50 bps this month, compared to zero a week ago, according to the CME FedWatch tool.
(more to come)