People walk past the Bombay Stock Exchange (BSE) building in Mumbai, India, March 9, 2020. REUTERS/Francis Massarenhas
BENGALURU, Sept 12 (Reuters) – Indian stocks were on course for a third straight session of gains on Monday, boosted by technology stocks, as investors awaited domestic inflation data on the pace of central bank rate hikes.
The NSE Nifty 50 index (.NSEI), with most major sub-indexes in positive territory, was up 0.7% at 17,957.55 by 0458 GMT, and the S&P BSE Sensex (.BSESN) rose 0.7% to 60,211.71.
The Nifty’s IT index (.NIFTYIT) rose as much as 2 percent to hit a more than three-week high. Infosys Ltd ( INFY.NS ) and Tech Mahindra Ltd ( TEML.NS ) were among the top performers on the benchmark Nifty 50, climbing 1.8% and 2% respectively.
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Profits aided by falling global oil prices. India, the world’s third-largest importer of oil, will take advantage of the drop in prices to reduce the cost of imports.
Crude prices fell on expectations of further interest rate hikes in the United States and Europe, and sought concerns following the imposition of Covid-19 restrictions in China.
“Overall the sentiment was positive as lower oil prices resulted in good results for our earnings and global markets,” said Neeraj Dewan, Director, Quantum Securities.
Investors will be watching domestic and U.S. inflation data closely this week to see if inflation moderates or peaks, Dewan said.
Dewan added that markets are pricing in a 75 basis point increase in the US Federal Reserve, but not back-to-back rate hikes, and this indicator is provided by inflation data.
India’s retail inflation, data released the day after market close, ended a three-month downward trend in August as food prices rose, a Reuters poll of economists showed, pointing to a sharp increase by the Reserve Bank. India. Read more
Meanwhile, Anupam Rasayan, a chemical manufacturer in the market, said four people died and 20 were injured in a fire at a factory.
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Reporting by Rama Venkat from Bengaluru; Editing by Dhanya Ann Thoppil and Neha Arora
Our Standards: The Thomson Reuters Trust Principles.
