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Indian shares posted strong gains on Friday to extend the previous session’s rally as investors priced in more Fed rate cuts next year. <\/p>\n
At its meeting on Wednesday, the Federal Reserve signaled the end of tightening and hinted it would reduce rates by 75 basis points next year.<\/p>\n
It is believed that the Fed’s projections are more conservative, and the U.S. central bank could slash rates even further than forecast in 2024.<\/p>\n
The prospects of lower borrowing costs next year dented the dollar and spurred a decline in Treasury yields.<\/p>\n
Any drop in the interest rates means that more money will flow into emerging markets<\/span> and India will be the biggest beneficiary.<\/p>\n Markets currently price in around a 75 percent chance of a rate cut in March. The benchmark S&P BSE Sensex soared 969.55 points, or 1.37 percent, to 71,483.75 while the broader NSE Nifty index closed at 21,456.65, up 273.95 points, or 1.29 percent, from its previous close.<\/p>\n IT stocks were among the top gainers as global bond yields continued to retreat on rate cut hopes. Infosys, TCS and HCL Technologies soared 5-6 percent. <\/p>\n Metal stock such as Tata Steel, JSW Steel and Hindalco surged 2-3 percent as metal prices jumped after mixed economic data and positive signals from policymakers in China.<\/p>\n State Bank of India shares rallied 4 percent. The state-run lender bought a 6.35 percent stake in in Canpac Trends, which provides paper-based packaging solutions, for nearly Rs 50 crore. <\/p>\n<\/p>\n<\/div>\n
Benchmark indexes Sensex and Nifty both hit record highs for another day, reflecting upbeat global sentiment. <\/p>\n