(Reuters) -India’s benchmark stock indexes opened marginally higher on Monday, inching towards record highs, led by IT shares amid rising expectations of a rate cut by the Federal Reserve in December.
The Nifty 50 rose 0.21% to 26,122.8, while the BSE Sensex was up 0.1% at 85,320.04, as of 9:15 a.m. IST.
Five of the 16 major sectors logged gains at the open. IT firms, which earn a significant share of their revenue from the U.S., rose 1.1%.
Other Asian markets also rose, with the MSCI Asia ex-Japan index adding 1%, after New York Fed President John Williams said the U.S. central bank could still cut interest rates in the near term. [MKTS/GLOB]
Odds of a U.S. rate cut in December have risen to 70% from 44% a week ago, according to the CME FedWatch Tool.
Lower U.S. interest rates support economic growth in the U.S., benefitting sectors such as IT and also make emerging markets such as India more attractive for foreign investors.
The broader small-caps and mid-caps fell about 0.1% each.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Subhranshu Sahu)
