Fed pause hopes to boost Indian shares. After May retail inflation statistics lifted confidence, Indian shares rose on Tuesday, with the wider midcap index setting a new record.
As of 10:27 a.m. IST, the S&P BSE Sensex (.BSESN) increased 0.54% to 63,062.86, and the blue-chip Nifty 50 (.NSEI) advanced 0.51% to 18,697.35.
FMCG (.NIFTYFMCG) rose 1.5% among the 13 key sectoral indexes. Thirteen components rose.
Financials gained 0.3% and IT 0.5%.
Midcaps (.NIFMDCP100) rose 0.88% to a record high, as did the broader indexes. Smallcaps (.NIFTYSMCP100) rose 0.64% to a 52-week high.
Domestic inflation fell to a two-year low of 4.25% in May, helped by a drop in food prices. Industrial output increased 4.2% in April, exceeding the 1.8% forecast.
“Favourable macroeconomic data, rising odds of a Fed rate pause augur well for Indian shares,” said Esquire Capital Investment Advisors CEO Samrat Dasgupta, adding that monsoons might shape markets shortly.
Global equities climbed before Tuesday’s U.S. inflation report and Wednesday’s Fed policy announcement. Rate pause odds were 80.4%. FED WATCH
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