By Bharath Rajeswaran and Vivek Kumar M
(Reuters) – Indian shares rose on Friday tracking global gains, as softer U.S. jobs data overshadowed a hotter-than-expected inflation reading and bolstered bets for Federal Reserve rate cuts.
The Nifty 50 rose 0.27% to 25,072.1, and the BSE Sensex gained 0.26% to 81,761.84 as of 10:16 a.m. IST.
Fourteen of the 16 major sectors rose. The broader, more domestically focussed small-caps and mid-caps were up 0.5% each.
Expectations of U.S. rate cut next week and in the next two meetings climbed, improving domestic sentiment, as data confirmed softness in the U.S. labour market even as inflation rose more than expected.
Between the improving sentiment, stable domestic flows, and signs of progress in U.S.-India dialogue, “the stage is set for a broad-based recovery in domestic equities,” said Siddharth Vora, head of quant and fund manager at PL Asset Management.
Auto stocks rose 0.8%, the most among sectors. Analysts attribute the uptick to government’s sweeping tax cuts, set to kick in later this month, which are expected to boost demand and aid sales and volume growth.
The IT index gained about 0.5%, led by a 1.5% rise in Infosys after it approved its largest ever share buyback of $2.04 billion. The buyback of 1,800 rupees per share is at a premium of around 19.2% to last close.
Among individual stocks, Lupin rose 2.6% after Investec upgraded the drug maker to “buy” from “hold”, citing potential gains from anti-diabetes drug (GLP-1) segments and due to reasonable valuations.
GAIL rose 2%, adding to the 3% rise in the previous session, after J.P.Morgan and Citi research identified the potential hike in pipeline tariff as a key positive catalyst for earnings growth.
Astral and Supreme Industries gained about 2% each after J.P.Morgan initiated coverage of the pipe makers with an “overweight” rating, citing demand revival in the ongoing September quarter and volume growth for fiscal years 2025-28.
(Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Sumana Nandy and Janane Venkatraman)
