IT leads Indian shares to record closing highs on US rate outlook
![](https://portfolio.investmentguruindia.com/uploads/news/indian share10.jpg)
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Indian shares logged record closing highs on Thursday, amid a global rally after softer-than-expected U.S. inflation data bolstered expectations that the Federal Reserve would cut rates sooner rather than later.
The NSE Nifty 50 settled 0.33% higher at 23,398.90, recording an all-time closing high for the third time in four sessions. The S&P BSE Sensex added 0.27% to finish at an all-time high of 76,810.90.
Both the benchmarks climbed 0.7% in early trade to hit record highs before trimming some gains, in part as state-run banks snapped a six-session post-elections results rally.
U.S. consumer prices were unexpectedly unchanged in May, lifting bets of a rate cut in September to 61% from 53%, according to the CME FedWatch tool.
"Favourable cues from the U.S., including cooling core inflation, has boosted sentiment, powering IT stocks higher," said Sanjeev Hota, vice president and head of research at Sharekhan.
Even the broader, domestically focussed small- and mid- hit all-time highs, joining in the global rally. [MKTS/GLOB]
That was despite the Fed slashing its forecast to only one rate cut worth 25 basis points this year, from the three it projected in March. The futures market, though, is pricing in 44 bps of cuts.
Seven of the 13 major sectors logged gains. IT companies, which count U.S. as a key revenue geography, jumped 1.03%.
Financials and realty stocks, which are sensitive to domestic interest rates, climbed 0.29% and 2.24%, respectively.
That was after data showed India's retail inflation eased slightly in May, supporting bets for a rate cut in the last quarter of the year.
Among stocks, Larsen & Toubro gained 2% after its hydrocarbon unit won an order for modifications at the Tapti Daman block, off India's west coast, from ONGC.
Paytm gained 6.35% after saying its ticket-booking services for travel and entertainment would be available on Samsung Wallet in India.
![](https://portfolio.investmentguruindia.com/uploads/news/Varun Beverages Ltd.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Five Star Business Finance ltd.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Samsung23.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/handshake_12.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Atul Garg, MD, GRM Overseas Ltd.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Broker _26.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Hindustan Petroleum Corporation Ltd.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Rubix.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Broker _14.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Polycab India Ltd.jpg)
Tag News
![](https://portfolio.investmentguruindia.com/uploads/news/Broker _26.jpg)
Daily Market Commentary : Nifty traded in negative territory for most of the session to clos...
![Weekly Market Outlook : The Indian market initially continued its upward trend as concerns over election outcomes eased and global sentiment improved says Vinod Nair, Geojit Financial Services](https://portfolio.investmentguruindia.com/uploads/news/Broker _14.jpg)
![Weekly Market Analysis : The markets continued to consolidate for another week, ending almost unchanged amidst mixed cues Says Mr. Ajit Mishra, Religare Broking](https://portfolio.investmentguruindia.com/uploads/news/Ajit Mishra.jpg)
![Quote on FPI Flow details by Shrikant Chouhan, Head Equity Research, Kotak Securities](https://portfolio.investmentguruindia.com/uploads/news/Shrikant Chouhan.jpg)