India stock benchmarks to open higher, mirroring Asia on Fed rate cut hopes
India's equity benchmarks are likely to open higher on Wednesday, buoyed by strong gains across Asian markets on strengthening bets for a U.S. Federal Reserve rate cut.
Gift Nifty futures were trading at 25,284 points as of 7:58 a.m. IST, indicating that the benchmark Nifty 50 will open above Tuesday's close of 25,145.5.
On Tuesday, Fed Chair Jerome Powell noted that the U.S. labour market remained weak, while the economy appeared to be on a firmer footing, adding that the inflation outlook remains unchanged from September, when the central bank cut rates by 25 basis points.
Asian markets gained 0.9% as optimism around a Fed rate cut lifted sentiment. However, renewed U.S.-China trade tensions kept a lid on risk appetite. [MKTS/GLOB]
Lower U.S. interest rates make emerging markets like India attractive to foreign investors as dollar and Treasury yields are typically lower.
The benchmark Nifty 50 and Sensex lost 0.6% each in the last two sessions, dragged down by financials and worries over U.S.-China trade woes. [.BO]
STOCKS TO WATCH
** Software services exporter Tech Mahindra posts better-than-expected second-quarter revenue, aided by strength in its banking and manufacturing verticals
** ICICI Lombard General Insurance reports higher profit for the September quarter, driven by strong demand for retail health insurance and a rebound in vehicle sales that strengthened its motor insurance segment
** IT services provider Persistent Systems reports higher revenue and profit for September quarter
