Indian shares open higher on rising bets for US rate cut

Indian shares opened higher on Friday tracking global gains, as softer U.S. jobs data overshadowed a hotter-than-expected inflation reading and bolstered bets for Federal Reserve rate cuts.
The Nifty 50 rose 0.28% to 25,074.45, and the BSE Sensex gained 0.26% to 81,758.95 as of 09:15 a.m. IST.
Fifteen of the 16 major sectors advanced at the open. The broader, more domestically focussed small-caps and mid-caps rose 0.4% each.
IT index gained about 1%, led by a 2% rise in Infosys after it approved its largest ever share buyback of $2.04 billion at 1,800 rupees per share, a premium of around 19.2% to last close.
Investor sentiment was also aided by rising prospects of U.S. rate cut next week and in the next two meetings after data confirming softness in the U.S. labour market offset a rise in inflation in August.
Lower U.S. interest rates make emerging markets such as India attractive for foreign portfolio investors (FPIs), as Treasury yields and dollar typically fall in such a scenario.

Sumber : Reuters