Bangalore: Indian shares hit a one-month high on Monday as IT and automobile stocks rose, tracking broader Asia on hopes that central banks may slow the pace of interest rate hikes.
The NSE Nifty 50 index rose 0.96% to 17,957.10 at 0450 GMT, and the S&P BSE Sensex rose 1.01% to 60,565.05.
For the past closing month, the index has gained over 4% each, based on corporate earnings reports and expectations of a less-aggressive stance from major central banks.
“The strength of the US economy is indicating less likelihood of an immediate US slowdown and there are indications that inflation is stabilizing. This may enable the Fed to slightly soften its hard stance,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services. can make.
Vijayakumar said Canadian and Australian central banks have hiked rates lower than expected and if the trend spreads, it would favor a continuation of the rally in the short term.
Investors will look to the results of the US Federal Reserve and the Bank of England’s policy meetings this week.
A meeting of the Monetary Policy Committee of the Reserve Bank of India is also expected.
Scheduled for November 3, the meeting will likely discuss the committee’s response to the government on its failure to stick to its inflation target for three consecutive quarters.
In domestic trade, Nifty’s IT and Automobile indices were among the top performers, rising over 1% each.
Automobile makers Mahindra & Mahindra, Maruti Suzuki India and Eicher Motors were the top losers on the Nifty 50 index between 2% and 3%.
Tata Steel and Bharti Airtel were down 0.7% and up 1.7%, respectively, ahead of their quarterly results later in the day.
Asian stock markets rose on Monday on hopes that the Fed may seem less aggressive about rate hikes. [MKTS/GLOB] , Reuters
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