Indian share prices surged 1.81 percent to a new record close on Tuesday on hopes that the US Federal Reserve will announce a cut in interest rates later in the day, dealers said. They said banking, metal and property stocks rose on expectations that a rate cut would boost overseas inflows into emerging markets like India.
The benchmark 30-share Sensex index rose 360.21 points to 20,290.89, beating its previous best of 19,977.67 set on October 29. Analysts expect that the US central bank could cut its key lending rate by at least 25 basis points from its current level of 4.50 percent.
"The Sensex closed well above the 20,000 points on expectations of a strong rally ahead if the US Fed cuts rates," said Advait Date, a dealer with brokerage BHH Securities.
Comments
Comments are closed.