Sensex, Nifty trade higher on Fed rate cut hopes, prospects of US–China deal

Mumbai, Oct 28 (PTI) Equity benchmark indices Sensex and Nifty were trading with gains early on Tuesday, driven by hopes of rate cut by the Federal Reserve and prospects of a US–China trade deal.

The 30-share BSE Sensex climbed 125.93 points to 84,904.77 in early trade. The 50-share NSE Nifty went up by 39.8 points to 26,005.85.

From the Sensex firms, State Bank of India, Tata Steel, Larsen & Toubro, Adani Ports, Titan and Maruti were among the major gainers.

However, ICICI Bank, Bajaj Finance, Bajaj Finserv and Asian Paints were among the laggards.

In Asian markets, South Korea’s Kospi and Japan’s Nikkei 225 index traded lower, while Shanghai’s SSE Composite index and Hong Kong’s Hang Seng quoted higher.

US markets ended in the positive territory

on Monday.

“Market sentiment remains upbeat, supported by five catalysts: A softer US CPI boosting rate cut hopes, prospects of a US–China trade deal, FII inflows in recent sessions, record-high Wall Street indices, and a strong start to Q2 earnings,” Prashanth Tapse, Senior VP (Research), Mehta Ltd, said.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 55.58 crore on Monday, according to exchange data. Domestic Institutional Investors (DIIs) however, bought stocks worth Rs 2,492.12 crore in the previous trade.

“New flows indicate continuation of the positive momentum in the market. There are indications of a possible agreement between the US and China on tariffs… A near-term positive for the market is the expectation that the Fed would cut rates in the FOMC (Federal Open Market Committee) meet on Wednesday since US CPI inflation (3 per cent YoY) is not high as feared,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

Global oil benchmark Brent crude traded 0.05 per cent up at USD 65.65 a barrel.

On Monday, the 30-share BSE Sensex jumped 566.96 points or 0.67 per cent to settle at 84,778.84. The Nifty climbed 170.90 points or 0.66 per cent to 25,966.05. PTI SUM SUM ANU ANU