Indian shares pause near lifetime highs, log weekly gains ahead of likely Fed rate cut
Updates to close
By Bharath Rajeswaran
BENGALURU, Sept 13 (Reuters) -Indian shares ended flat on Friday, after hitting all-time highs in the previous session, and logged their best week since the end of June ahead of a likelyrate cut by the Federal Reserve.
The Nifty50 .NSEI closed 0.13% lower at 25,356.5, while the Sensex .BSESN shed 0.09% to 82,890.94.
Both the indexes rose about 2% each for the week, their best gainssince June-end.
Gains for the week were drivenby a 3% risein consumer stocks .NIFTYFMCG on hopes of demand revival and volume growth due to a stablemonsoon. IT companies.NIFTYIT, which earn a chunk of theirrevenue from the U.S., gained 2.8% ahead of a near-certain Fed rate cut next week.
"All the liquidity, like we saw earlier this week with rising mutual fund inflows into equities and the rush for Bajaj Housing Finance IPO, will find its place in the markets, keeping them buoyant," said Aishvarya Dadheech, founder and chief investment officer of Fident Asset Management.
"But the scope for further upside is crucially linked to whether U.S. economy sees a soft landing or not, given the rate cut is imminent."
Media reports said that the Fed's decision on a 25- or 50-basis point reductionwill be a close call, with the odds of the larger cutrising to 45%from 28% a day ago.
Domestically, two-wheeler maker Bajaj Auto BAJA.NS, telecom firm BhartiAirtel BRTI.NS and consumer companies Britannia BRIT.NS and Hindustan Unilever HLL.NS were among the top ten Nifty 50 weekly gainers.
Tata Motors TAMO.NS lost 5.5% this week after UBS forecast a 21% slump for the company over the next12 months, citing weakening financials.
Apart from theFed's rate decision on Wednesday, the focuswill also beon Bajaj Housing Finance's BAJO.NS listing onMonday, after investors bid for 64 times the shares on offer in the hottest IPO so far in 2024.
($1 = 83.9460 Indian rupees)
India's Nifty 50 posts best week since the end of June https://reut.rs/3XmhHfX
Weekly performance of India's major stock indexes https://reut.rs/3Xhomry
Weekly performance of India's Nifty 50 stocks https://reut.rs/3MKMZIE
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sherry Jacob-Phillips, Sonia Cheema and Savio D'Souza
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