INDIA STOCKS-India's stock benchmarks hit 10-week highs on Fed rate cut, optimism over US trade talks
By Bharath Rajeswaran and Vivek Kumar M
Sept 18 (Reuters) - India's benchmark shares rose on Thursday, closing at 10-week high levels, led by IT and pharmaceutical shares after the U.S. Federal Reserve delivered a quarter-point rate cut and on signs of easing trade tensions.
The Nifty 50 .NSEI gained 0.37% to 25,423.60, and the BSE Sensex .BSESN rose 0.39% to 83,013.96.
Shares of information technology .NIFTYIT and pharmaceutical firms .NIPHARM, which earn a significant share of their revenue from the U.S., rose 0.8% and 1.5% respectively.
The pharma index also received an additional boost from Biocon BION.NS and Natco Pharma NATP.NS, which rose 4% and 3.3%, respectively, aided by positive regulatory action by the U.S. drug regulator.
Twelve of the 16 major sectors logged gains. The broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 added about 0.3% and 0.4%, respectively.
The Fed lowered rates on Wednesday for the first time this year but signalled a measured approach to further monetary policy easing, leaving investors in doubt about the pace of future moves.
The Fed's decision is likely to attract fresh inflows from foreign institutional investors and lift overall investor confidence, said Om Ghawalkar, market analyst at online investment platform Share.Market.
Market gains also firmed after chief economic advisor V. Anantha Nageswaran said at an event that he expected the penal U.S. tariffs on certain imports to be withdrawn after November 30.
The reciprocal tariff may come down to a level that New Delhi had been previously anticipating, somewhere between 10% and 15%, Anantha Nageswaran said.
The benchmark Nifty is trading at a ten-week high level, having closed in the green in 11 out of the last 12 sessions. It is about 3.25% below the record high levels hit in September last year.
Cohance Lifesciences COHA.NS lost 5.6% after shares worth an 8.9% stake in the company traded at a discount in a block deal. Reports said Advent unit Jusmiral Holdings was looking to sell shares.
India's Nifty 50 settles at 10-week high level after Fed rate cut
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