Fed rate cut lifts Indian shares to record high

Indian shares climbed to a record high on Thursday, buoyed by expectations of a rise in foreign inflows after US Federal Reserve kicked off its monetary easing cycle with a large half-percent point rate reduction.

Nifty 50 index gained 0.15 per cent to 25,415.8, while S&P BSE Sensex ded 0.29 per cent to 83,184.8.

" Federal Reserve's rate cut is expected to boost Indian equities and attract foreign investment in short term," said Vipul Bhowar, senior director of listed investments at Mumbai-based wealth visory firm Waterfield visors.

Fed's dot plot also signalled that central bank has projected ar half-a-percent point cut in 2024.

"However, concerns about underlying weaknesses in US ecomy persist and could le to increased market volatility," Bhowar said. IT and pharma indexes, which ded about 1 per cent and 0.6 per cent respectively in early tre, reversed gains to settle 0.3 per cent and 0.4 per cent lower. Two analysts attributed drop to profit booking at record levels.

IT and Pharma companies earn a significant share of ir revenue from US

Banking, consumer and realty stocks ded about 0.5 per cent each, while oil and gas index shed 1.3 per cent, dragged by oil marketing companies.

broer, more domestically focussed small- and mid-caps lost 1.3 per cent and 0.7 per cent, respectively.

" margin of safety in terms of valuations for small- and mid-caps has reduced due to recent sharp rally," said Neeraj Chawar, he of fundamental and quantitative research at Axis Securities.

"re could be some correction in broer markets with flows likely to shift to large-caps," Chawar said.

Among individual stocks, state-owned power producer NTPC rose 2.4 per cent after its green energy arm filed for a $1.2 billion initial public offer.

Telecom companies such as Vodafone Idea fell 20 per cent, while Indus Towers dropped about 9 per cent after country's top court rejected ir plea to correct alleged errors in calculating license fee y owe government.