- On November 6 (globianews) :- Indian stocks experienced an upward trend, reflecting the positive performance of Asian markets. This surge was attributed to the anticipation of earlier interest rate cuts in the United States and Europe.
The NSE Nifty 50 index saw a 0.50% increase, reaching 19,326.50, while the S&P BSE Sensex rose by 0.47% to reach 64,665.67 as of 9:57 a.m. IST. Notably, 46 of the Nifty 50 constituents were in the green. Real estate stocks hit record highs for the third consecutive session, increasing by 1.5% and leading sectoral gains.
Information technology (IT) stocks rose by 0.7% after data indicated a cooling U.S. labor market. This information raised hopes that the Federal Reserve might conclude its rate hikes. Given that IT companies derive a substantial portion of their revenue from the U.S., high interest rates have previously affected client spending.
The Fed’s decision to maintain its interest rate on November 1st triggered a global market rally. The CME FedWatch tool showed an 81% probability of a 25 basis points rate cut by June 2024. Markets also implied an approximately 80% likelihood of the European Central Bank cutting rates by April.
Broader Asian markets followed suit, with the MSCI Asia ex-Japan index surging by nearly 2%.
Anita Gandhi, director at Arihant Capital Markets, expressed optimism regarding the continuation of the upward momentum in Indian markets. Gandhi highlighted that the recent U.S. jobs data suggested that the Fed would likely take action to support the economy, alleviating concerns about rising interest rates.
In individual stocks, Interglobe Aviation (INGL.NS) rose by 2% after the airline operator reported a second-quarter profit due to steady air travel demand. JK Cement (JKCE.NS) witnessed a 4.5% jump following its report of increased net profit in the September quarter.
Contrarily, Bank of Baroda (BOB.NS) experienced a 3.5% decline despite reporting robust quarterly results.