BENGALURU: Indian shares opened higher on Tuesday, led by information technology and pharma, and tracking a rebound in global stocks ahead of key U.S. inflation data and the Federal Reserve’s interest rate decision.
The Nifty 50 index was up 0.25% at 24,996.5 points, while the S&P BSE Sensex rose 0.23% at 81,753.7, as of 9:29 a.m. IST.
“A renewed wave of dip buying has stimulated a rebound in stocks after a drop (on Monday and earlier on Tuesday), triggered by U.S. economic concerns,” said Deepak Jasani, head of retail research at HDFC Securities.
Traders are now looking for U.S. inflation data for clues on the size of Fed rate cuts, said Jasani.
Wall Street equities closed higher overnight, bouncing back from a weekly drop on Friday after mixed labour market data.
The U.S. consumer price index, due on Wednesday, is expected to show that inflation remains on the path back to the Fed’s target.
Consumer stocks help Indian shares end higher in choppy session
The reading will be crucial to determine the size of a likely Fed rate cut next week.
Asian markets were higher on Tuesday, though concerns over China’s growth outlook capped gains.
Barring heavyweight financials, which logged marginal losses, all the other sectors advanced.
IT companies, which earn a significant share of their revenue from the U.S., gained 0.8%.
The pharma index gained 1% after India’s goods and services tax (GST) council recommended a reduction in tax rates on specific cancer drugs.
Snack makers like Gopal Snacks, Prataap Snacks and Bikaji Foods rose about 5% each after the GST council recommended cutting tax rate on “namkeen”, or Indian savory snacks, to 12% from 18%.
The more domestically focussed small- and mid-caps rose about 1.1% each.
Source: Brecorder
