BENGALURU: Indian shares opened relatively flat on Tuesday, holding steady at record highs as traders paused following a record rally spurred by the U.S. Federal Reserve’s substantial interest rate cut last week.
The benchmark Nifty 50 and S&P BSE Sensex were down about 0.1% each as of 9:25 a.m. IST.
The indexes have scaled all-time peaks for three straight sessions after the Fed cut rates by 50 basis points on Sept. 18.
“Markets are taking a breather after a recent surge in Nifty, however the tone is likely to remain positive,” said Religare Broking’s Ajit Mishra.
While seven of the 13 major sectors logged gains, commodity indexes - Nifty metal and Nifty energy -rose 1.7% and 0.4%, respectively. They emerged as biggest gainers among the sub-indexes.
Indian shares continue to scale new peaks after US rate cut
Asian shares rose as China’s top financial regulators rolled-out a slew of measures, saying it would cut bank reserves by 50 basis points while reducing mortgage rates to try to spur sluggish economic growth.
“China stimulus will be favorable for commodity product companies,” said Samrat Dasgupta, CEO at Esquire Capital Investment Advisors.
A slow Chinese economy results in dumping of metals and other commodity products in global markets, affecting local economies, Esquire Capital’s Dasgupta added.
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