Indian shares opened higher on Thursday, tracking other Asian peers, after underlying US inflation softened in December, raising hopes for further easing by the Federal Reserve.
The Nifty 50 was up 0.53% at 23,340.3 points as of 9:15 a.m. IST, while the BSE Sensex added 0.58% to 77,146.82.
All the 13 major sectors advanced at the open. The broader, more domestically focussed smallcaps and midcaps rose about 1.3% each. Other Asian markets rose on the day, with the MSCI Asia ex-Japan index gaining 1.3%.
Wall Street equities ended higher overnight, while US Treasury yields eased after data on Wednesday showed that US core inflation rose less than expected last month, increasing the likelihood of more rate cuts by the Fed.
Indian equity benchmarks end higher, led by financials, metals
Lower US rates will make emerging markets, such as India, more attractive for foreign investment.
After the US consumer price inflation data, traders are now pricing in two Fed rate reductions in 2025, compared to one after strong labour market figures last week, according to CME FedWatch Tool.
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