By Bharath Rajeswaran and Vivek Kumar M
(Reuters) – India’s equity benchmarks rose on Wednesday, buoyed by optimism after New Delhi described its ongoing trade talks with the U.S. as “positive” and “forward-looking”, while hopes of a Federal Reserve rate cut later in the day also aided sentiment.
The Nifty 50 added 0.32% to 25,319.95 and the BSE Sensex rose 0.32% to 82,642.57 as of 09:46 a.m. IST.
Eleven of the 16 major sectors logged gains. The broader small-caps and mid-caps added 0.5% and 0.2%, respectively.
IT companies, which earn a significant share of their revenue from the U.S., rose 0.8%, leading the sectoral gains.
A delegation of U.S. trade representatives met Indian officials in New Delhi on Tuesday.
“It was decided to intensify efforts to achieve early conclusion of a mutually beneficial Trade Agreement,” India’s commerce ministry said in a statement.
Meanwhile, investors are awaiting the Federal Reserve’s policy decision after market hours, with the U.S. central bank expected to cut rates by 25 basis points and signal more reductions in the remainder of the year.
“We expect the market to continue its gradual upmove, while tracking key trade-related development and Fed rate cut decision, which would play a pivotal role in shaping near-term sentiment,” said Siddhartha Khemka, head of research of wealth management at Motilal Oswal Financial Services.
Among individual stocks, Mahindra Lifespaces advanced 4.4% after announcing redevelopment plans for two housing societies in Mumbai with a development potential of 17 billion rupees ($193.6 million).
Premier Explosives climbed 7.1% after the Telangana Pollution Control Board lifted its closure order on the company’s factory in the state.
Bharat Electronics gained 2% on securing orders worth 7.12 billion rupees.
Cement makers such as Ultratech Cement, Shree Cement, Ramco Cements, Ambuja Cements and Dalmia Bharat rose 1%-3.3% after CLSA said the sector was likely to see margin expansion from pricing discipline, cost saving initiatives and the recent tax cuts.
($1 = 87.8050 Indian rupees)
(Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Sumana Nandy and Janane Venkatraman)
