BENGALURU (Reuters) – India’s benchmark Nifty 50 and Sensex rose to all-time highs on Thursday, led by metal and real estate stocks, after U.S. inflation data raised the prospect of a pause in interest rate hikes by the Federal Reserve. .
The Nifty 50 index (.NSEI) rose 0.41% to a record high of 20,152.65 as of 9:53 AM EST, while the S&P BSE Sensex (.BSESN) rose 0.37% to 67,715.44.
The Nifty index hit new highs on Monday and Tuesday, while the Sensex hit a record high for the first time since July 20 on Thursday.
All 13 major sectors recorded gains, with metals (.NIFTYMET) rising more than 2%, and real estate stocks (.NIFTYREAL) increasing 1.75%.
More domestically focused small-cap (.NIFSMCP100) and mid-cap (.NIFMDCP100) stocks, which saw higher volatility earlier this week, rose 1% each.
“Indicators for Indian markets remain positive, supported by strong macro data and steady retail flows despite the foreign sell-off starting in September,” said Anita Gandhi, Director, Arihant Capital Markets, adding that the indicators may see “further upside, but With high. Volatility.”
However, Gandhi cautioned that valuations are still on the higher side, which may limit gains.
Analysts also said the possibility of a temporary Fed rate hold would support sentiment in the coming days.
Asian shares rose in early trade on concerns about falling interest rates after US consumer price data showed core inflation fell to 4.3% in August from 4.7% in July, the smallest year-on-year rise in nearly two years.
However, overall retail inflation accelerated to 3.7% in August, the highest rate in 14 months, due to higher gasoline prices.
Among individual stocks, Bombay Dyeing and Mfg rose 18% after it announced it would sell a plot of land in Mumbai to a unit of Japan’s Sumitomo Realty and Development.
Suven Pharmaceuticals (SUVH.NS) shares rose four percent after the government approved foreign investment of up to 95.89 billion rupees in the drugmaker.
($1 = 82.9000 Indian Rupees)
(Reporting by Bharat Rajeswaran and Arisheshma Iyer in Bengaluru; Preparing by Mohammed for the Arabic Bulletin) Editing by Janan Venkatraman
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