Markets Open Higher on Fed Rate Cut Hopes; IT and Realty Lead Gains
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Summary: Sensex and Nifty edge up as investors bet on a US Fed rate cut, boosting confidence.
Indian markets began the day on a strong note, buoyed by rising expectations of a US Federal Reserve rate drop and consistent global indications. Both the Sensex and the Nifty advanced in early trade, building on the previous session's positive momentum.
Tech and real estate shares were the early earners. Infosys jumped after announcing a major share buyback, helping drive the IT sector higher, while key realty stocks also added to the gains.
Investors are upbeat due to poor US employment data, which strengthens the case for a Fed rate cut, but many are still concerned about inflationary pressures and rising oil prices, which might change attitude later in the day.
Technology and real estate counters led the charge. Infosys jumped after announcing a large share buyback program, helping the entire IT index move higher. Expectations of stable housing demand and rising sales trends boosted real estate companies such as DLF and Godrej Properties. Banking, car, and FMCG companies also registered modest increases, broadening the rise.
Market participants are keeping a close eye on domestic inflation data due next week and on global crude oil prices, which remain elevated. Analysts advise caution, while the near-term picture is positive, any surprise in inflation or a rapid surge in oil prices may prompt profit-taking.
