Indian stocks closed higher during Wednesday’s trade, October 29, with metals and tech leading the gains ahead of an expected US Federal Reserve rate cut later in the day. Positive remarks by Donald Trump on a potential trade deal with India also lifted sentiment, sending the Nifty 50 up 0.45%, settling above the 26,000 mark at 26,053.90.
The S&P BSE Sensex also rose 0.44% to 84,997. The broader markets ended higher as well, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices gaining over 0.40% each.
Amid expectations of a second consecutive rate cut by the US Federal Reserve, metal stocks extended their winning run, with the Nifty Metal index gaining 1.7% to end at a record high of 10,777. The same optimism also drove tech stocks higher, sending the Nifty IT index up 0.64%.
Other key sectoral indices, including Nifty Oil & Gas, Nifty Media, Nifty FMCG, Nifty Pharma, and Nifty Consumer Durables, also closed higher, rising between 0.7% and 2.12%. On the flip side, auto stocks came under profit booking pressure, causing the Nifty Auto index to slip 0.73%.
US President Donald Trump, currently in South Korea to attend the Asia-Pacific Economic Cooperation (APEC) Summit, said in his speech on Wednesday that he is doing a trade deal with India. He added that he has “great respect and love for Prime Minister [Narendra] Modi.”
Ponmudi R, CEO of Enrich Money, said, “The Nifty maintained its upward momentum today amid upbeat investor sentiment, supported by reports that the United States and India will soon finalise a long-delayed trade deal, as stated by Donald Trump during his South Korea visit. Additionally, expectations of a potential interest rate cut by the US Federal Reserve later in the day further boosted market sentiment, keeping overall momentum positive.”
(more to come)