July 16, 2024 at 01:30 am EDT
BENGALURU (Reuters) - India's benchmark indexes rose to a record high on Tuesday, led by information technology shares on firming bets of a rate cut as early as September.
Both the NSE Nifty 50 and S&P BSE Sensex rose about 0.3% each to record highs, and are hovering around those levels, as of 10:55 a.m. IST.
The Nifty 50 has hit all-time highs in eight of the 12 sessions so far in July, rising about 2.7% over the period.
All the 13 major sectors logged gains. Small- and mid-caps rose about 0.6% each to hit record highs as well.
The market's upward momentum is likely to continue ahead of the union budget with no near-term correction expected, said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
The Indian government is set to present the national budget on July 23, with analysts expecting the government to continue spending on infrastructure and to support manufacturing, as well as announce measures to boost consumption.
IT stocks gained about 0.5%, helped by firming bets of a U.S. rate cut in September and a positive earnings outlook for the sector on the back of results from Tata Consultancy Services and HCLT ech.
IT companies earn a significant share of their revenue from the U.S., and a rate cut in the world's largest economy could lead to improvement in client spending and spur further foreign inflows into Indian equities.
Among individual stocks, Hatsun Agro Products climbed 12% after a surge in quarterly profit, while Century Textiles rose 6% after its unit Birla Estates bought a land parcel with an estimated revenue potential of 14 billion rupees ($167.50 million).
Jio Financial lost 2% after posting a drop in June quarter profit.
Paytm lost about 2% after receiving a warning from the markets regulator for old transactions with its now wound-down banking unit.
($1 = 83.5725 Indian rupees) (Reporting by Bharath Rajeswaran and Manvi Pant in Bengaluru; Editing by Nivedita Bhattacharjee, Sohini Goswami and Janane Venkatraman)

Sumber : Reuters