Business NewsNational News

Indian shares reach a monthly high thanks to rising IT and auto stocks

On Monday, Asian stock markets rose on expectations that the Fed would appear more cautious about raising interest rates.

Bengaluru: On Monday, Indian equities surged to a level above a one-month high, matching advances in broader Asia on expectations that central banks may pause the rate of interest rate increases. The gains were driven by an increase in IT and auto companies.

As of 0450 GMT, the NSE Nifty 50 index increased by 0.96% to 17,957.10 and the S&P BSE Sensex increased by 1.01% to 60,565.05.

As of the most recent closing, the indices had each risen by more than 4% for the month as a result of corporate earnings reports and expectations for major central banks to adopt a less aggressive approach.

“The U.S. economy’s strength is indicating a lower probability of an immediate U.S. recession and indications that inflation is plateauing. This might enable the Fed to slightly moderate their hawkish stance,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Rate increases by the Canadian and Australian central banks fell short of expectations, and if this pattern continues, it will favour a short-term continuation of the rise, Vijayakumar added.

This week, investors will be monitoring the conclusions of the policy meetings held by the Bank of England and the U.S. Federal Reserve.

The Monetary Policy Committee of the Reserve Bank of India is also anticipated to convene.

The meeting, which is scheduled for Nov. 3, may cover the Committee’s reaction to the government regarding its inability to fulfil its inflation objective for three consecutive quarters.

Nifty’s IT and car indexes were among the best performers in domestic trading, gaining more than 1% each.

With gains ranging from 2% to 3%, automakers Mahindra & Mahindra, Maruti Suzuki India, and Eicher Motors were among the top gainers on the Nifty 50 index.

Prior to the release of their quarterly results later in the day, Tata Steel and Bharti Airtel were down 0.7% and up 1.7%, respectively.

On Monday, Asian stock markets rose on expectations that the Fed will be more cautious about raising interest rates.

Your Opinion Counts !

Show More

Related Articles


Adblock Detected

Please consider supporting us by disabling your ad blocker