Indian shares open higher led by metals, IT
Corrects to Wednesday, from Thursday, in paragraph 4
By Bharath Rajeswaran
BENGALURU, Sept 12 (Reuters) -Indian shares marched higheron Thursday, led by metals and IT stocks, on heightened expectations of arise in foreign inflows into domestic equities afterU.S. inflation data firmed bets of a 25-basis-point Federal Reserve rate cut.
The Nifty 50 index .NSEI was up 0.51% at 25,045 points, while the S&P BSE Sensex .BSESN gained 0.45% to 81,885.23, as of 9:23 a.m. IST.
All the 13 major sectors logged gains. ITcompanies .NIFTYIT, which earn a significant share of their revenue from the U.S., gained 0.9%.
U.S. consumer prices rose slightly in August, but underlying inflation showed somestickiness, according to data on Wednesday.
The odds a 25 bpsrate cut by the Fed on Sept. 18 rose to 85% from 66% a day ago, while the case for a larger50 bps reduction dwindled to 15% from 34%, according to CME FedWatch.
"A rate cut in the U.S. could boost growth, trigger foreign inflows and spur a rise in discretionary spending, helping domestic equities, in general, and information technology, pharmaceutical companies in particular," said Saurabh Jain, assistant vice president of research of retail equities at SMC Global Securities.
The pharma index .NIPHARM rose about 0.9%.
"However, a 25 bps cut is priced in and there are signs of some earnings moderation, so the gains from a Fed rate cut next week may be limited," Jain said.
Asian markets opened higher on the day, with the MSCI Asia ex-Japan index .MIAPJ0000PUS rising 1.4%,while Wall Street equities logged gains overnight. MKTS/GLOB
Among other sectors, the metalsindex .NIFTYMET rose 1.5%, led by a 3% jump in Tata Steel TISC.NS after it signed a 500 million-poundgrant funding agreement with the UK government.
The broader more domestically focussed small- .NIFSMCP100 and mid-caps .NIFMDCP100 rose 0.6% and 1%, respectively.
($1 = 83.9830 Indian rupees)
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sonia Cheema
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