Benchmark indices open up on possible Fed rate cut this year

Sensex up 191.35 points, or 0.24%, at 81,096.65

MUMBAI: Benchmark indices BSE Sensex and Nifty 50 opened on a positive note on Thursday, buoyed by expectations of at least one rate cut from the US Federal Reserve later this year, as indicated by the central bank’s latest minutes released on Wednesday.

At the opening bell, the 30-stock BSE Sensex was up 191.35 points, or 0.24 per cent, at 81,096.65, while the Nifty 50 had risen 62.25 points, or 0.25 per cent, to 24,832.45.

In overnight trading, US markets closed higher following the release of the minutes from the Federal Reserve’s meeting held on July 30 and 31. The Dow Jones Industrial Average rose by 0.14 per cent to 40,890.49, the S&P 500 gained 0.42 per cent to 5,620.85, and the Nasdaq Composite added 0.57% to 17,918.99.

Asian markets

Asian stocks also edged higher ahead of key policy announcements from the Federal Reserve and the Bank of Japan, which are expected to influence global interest rate trends. The MSCI Asia Pacific Index climbed 0.2 per cent, with gains in benchmarks across Japan, Australia, and South Korea.

This followed the S&P 500 and Nasdaq 100’s advances on signs that the Fed might cut interest rates. Fed minutes revealed that several officials saw a plausible case for rate cuts, though the decision was made to keep rates steady. Chair Jerome Powell is expected to provide further insights during his speech at the Jackson Hole economic symposium on Friday.

Stocks to Watch

• Zomato: The food delivery platform is expected to acquire Paytm’s entertainment ticketing business for Rs2,048 crore. As part of the deal, 280 employees from Paytm will join Zomato.
• Alkem Laboratories: A promoter of the pharmaceutical company is likely to offload a 0.7 per cent stake through block deals. The floor price is expected to be set at Rs5,616 per share.
• BEML: The PSU has signed a strategic Memorandum of Understanding (MoU) with the Directorate of Marine Engineering of the Indian Navy to develop advanced marine applications for defense. Additionally, BEML has signed an MoU with SMH Rail, Malaysia’s largest rolling stock manufacturer, to address global demand for rail and metro solutions.
• Paras Defence and Space Technologies: The Department for Promotion of Industry and Internal Trade (DPIIT) has granted the company an industrial license to manufacture various defense-related items, including infrared and thermal imaging equipment, electro-optics systems, radar systems, and other surveillance technologies, in Navi Mumbai, Maharashtra.