BENGALURU: India’s blue-chip index Nifty 50 logged its biggest monthly gain in November since July 2022, led by information technology (IT) and energy stocks, as bets of US interest rate cut by March 2024 triggered foreign inflows.

The NSE Nifty 50 index jumped 5.52% this month while the S&P BSE Sensex climbed 4.87% to gain the most in 13 months.

High weightage IT added 6.54% in November, after soft US inflation data and dovish comments from key Federal Reserve officials heightened expectations of rate cut. IT companies earn a significant share of their revenue from the US Energy and oil & gas jumped 9.37% and 11.39%, respectively in November, supported by a 4% drop in Brent crude prices. A fall in oil prices is a positive for importers of the commodity like India.

Auto surged 10.28% in November to new record highs, aided by a recovery in rural demand.

Realty jumped 18.34% on strong quarterly results and robust demand outlook.

“Domestic equities are buoyed by the return of foreign inflows on rising evidence that the US rate cycle has peaked,” said Saurabh Jain, assistant vice president of research at SMC Securities.

Foreign portfolio investors turned net buyers of Indian equities in November, after a two-month selling streak.