BENGALURU: Indian shares recovered from a lacklustre start to end higher on Tuesday, with IT and pharma stocks leading the charge ahead of crucial US inflation data that could pave the way for interest rate cuts.
The Nifty 50 index closed up 0.42% at 25,041.1, while the S&P BSE Sensex gained 0.44% to 81,921.29.
Both the benchmark indexes rose about 0.25% in early trade before surrendering gains, weighed down by heavyweight financials.
However, a 1.7% rise in IT companies, ahead of Wednesday’s US inflation report, helped lift domestic equities.
Indian IT firms gain a significant chunk of revenue from the United States.
“A softer-than-expected US inflation data could boost the chances of a 50 basis point Federal Reserve rate cut and spur a global stocks rally,” said Sunny Agrawal, head of fundamental equity research at SBICaps Securities, adding that markets have priced in a 25 basis point cut as the most probable scenario.
Source: Brecorder
