Indian shares set to open higher after bumper U.S. Fed rate cut

The Fed cutting rates could boost the markets to record highs, two analysts said

Indian shares are set to open marginally higher on Thursday (September 19, 2024) as the U.S. Federal Reserve started its monetary easing cycle with a large 50-basis-point rate cut.

The GIFT Nifty was at 25,453.5 points as of 08:08 a.m. IST, indicating the NSE Nifty 50 will open slightly above its close of 25,377.55 on Wednesday.

The Fed cutting rates could boost the markets to record highs, two analysts said.

ALSO READ: Why rate cuts by the U.S. Federal Reserve matter to world markets

"This rate cut will facilitate inflows to emerging markets like India," said Nilesh Shah, managing director at Kotak Mahindra Asset Management Company.

India's information technology and pharma companies, which earn a significant share of their revenue from the U.S., will be in focus.

Other Asian markets rose, with the MSCI Asia ex-Japan index rising 0.25%.

Foreign institutional investors and domestic institutional investors net bought Indian stocks on Wednesday, purchasing ₹11.54 billion ($137.91 million) and 1.52 billion rupees of shares, respectively, according to provisional data from the National Stock Exchange of India.

Published - September 19, 2024 08:42 am IST