Indian stocks are set to open at record highs on Monday, tracking gains in Asian markets, as investors, already buoyed by the US Federal Reserve’s half-point interest rate cut, brace for further easing from the US central bank.
The GIFT Nifty was at 25,939 points, at 8:01 am IST, indicating that the NSE Nifty 50 will open higher than its Friday close of 25,790.95.
Benchmark indexes hit new all-time highs on Friday and posted weekly gains on hopes of a soft landing for the U.S. economy – a scenario in which inflation slows without triggering a recession.
Asian stocks firmed at the open, with the MSCI Asia ex-Japan index trading 0.1% higher, helped by China cutting its repo rate to support its economy. [MKTS/GLOB]
After a 50 basis point rate cut on Wednesday, markets expect the Fed to cut rates another 50 basis points on Nov. 7, with a 50.3% chance of that happening at the Fed’s next policy meeting, according to CME FedWatch.
Indian stocks trail only Wall Street’s Nasdaq and S&P 500 as the best-performing indices this year, and analysts expect the rally to continue through 2025.
Foreign investors bought 140.64 billion rupees ($1.68 billion) worth of Indian stocks in the previous session, while domestic investors sold 44.27 billion rupees, according to exchange data.
ACTIONS TO WATCH
** Vodafone Idea signs $3.6 billion deal with Nokia, Ericsson, Samsung.
** Bharat Heavy Electricals receives Rs 61 billion order from NTPC.
** Glenmark Pharma says the US drug regulator has closed an inspection of its Aurangabad site with zero findings.
($1 = 83.4680 Indian Rupees)
