Information technology (IT) equities drove Wednesday’s gains in Indian shares, which increased after a dovish statement from a U.S. Federal Reserve member raised expectations of rate cuts as early as March 2024.
IT firms saw a 1.5% increase in revenue after Federal Reserve Governor Christopher Waller hinted that interest rates would be lowered in the coming months if inflation continued to decline. The IT industry receives a large portion of its business from the United States.
The likelihood of a 25 basis-point rate reduction by March 2024 increased from 21.5% to 40.4% on Wednesday.
Anita Gandhi, the founder and CEO of Arihant Capital, stated, “Sentiment continues to be positive for Indian equities,” noting the improvement in rural demand, the resumption of foreign inflows, and the softening expectation for global rates.
After two months, foreign portfolio managers have become net purchasers of Indian stocks, adding shares valued at 29.01 billion rupees as of Nov. 28.
“The updates from the Supreme Court hearing on the Adani conglomerate have also given a boost to Adani stocks, aiding positive sentiment,” Gandhi stated.
Adani group stocks continued their upward trend from Tuesday’s session, rising between 0.4% and 17% for the day.
According to LSEG statistics, as of 9:47 a.m. IST, 8.66 million shares of the meal delivery firm had changed hands in 12 blocks, which caused Zomato to surge 4%.
As per the terms of the sale, China’s Alipay initiated an expedited book build of $400 million to sell its whole 3.44% ownership in Zomato.
Following its agreement to sell Alpha GCC Holdings a controlling share in its Gulf business for $1.01 billion, Aster DM Healthcare saw an 11% increase in stock value.