BENGALURU: Indian shares hit record highs on Monday, underpinned by rising metal stocks on a favorable U.S. rate cut outlook, while Bajaj Housing Finance more than doubled over the issue price in its debut trade.

The NSE Nifty 50 rose 0.11% to 25,383.75, while S&P BSE Sensex gained 0.12% to 82,988.78.

Both the benchmarks rose about 0.3% to hit all-time highs during the session.

Nine of 13 major sectors logged gains. Metals gained 0.61%, buoyed by a softer U.S. dollar amid rising expectations of a 50 basis point interest rate cut by U.S. Federal Reserve, later this week.

A rate cut would support physical metals demand, as well as put pressure on the dollar, according to analysts. A softer U.S. dollar makes metals cheaper for holders of other currencies, like India.

“If the rate cut is in response to concerns about a slowing economy, the positive market effect could be muted. Conversely, if the Fed is cutting rates due to low inflation and a stable growth outlook, markets may rally further,” said Swapnil Aggarwal, director at New Delhi-based mutual fund distributor VSRK Capital.

Indian shares open marginally higher as metals shine

Energy stocks rose 0.8%, led by an 8% jump in Adani Green Energy after the company, along with Adani Power won a bid to supply 6,600 MW of renewable and thermal power to India’s Maharashtra state for 25 years.

Adani Power rose 5.13%.

The broader, more domestically focussed small- and mid-caps rose 0.2% and 0.4%, respectively.

Shares of Bajaj Housing Finance debuted at more than double the offer price of 70 rupees, and settled 136% higher.

Investors had bid for 64 times the shares on offer in the company’s IPO, the hottest so far in 2024.

Rival housing finance companies such as LIC Housing Finance , PNB Housing Finance fell about 6% and 6.6%, on the day.

Consumer stocks fell 0.72%, logging losses for second session after hitting record high levels hit last week.