By Bharath Rajeswaran and Kashish Tandon
BENGALURU -Indian shares tracked Asian peers higher on Tuesday, led by information technology stocks, on hopes the U.S. Federal Reserve will start cutting rates from September.
The NSE Nifty 50 index was up 0.53% at 24,702.65 as of 10:10 a.m. IST, and the S&P BSE Sensex rose 0.51% to 80,839.08.
Ten of the 13 major sectors logged gains. IT companies, which earn a significant share of their revenue from the U.S., rose 1.2% and were the top sectoral gainers.
Expectation of a sharp U.S. rate cut in September and data showing that U.S. economy will most likely avoid a recession are boosting interest in IT stocks, two analysts said.
Fed Chair Jerome Powell's address on Wednesday could boost IT stocks further, they said.
Other Asian markets also rose, with the MSCI ex-Japan gaining 0.25%.
India's broader, more domestically focussed small- and mid-caps rose about 0.2% each.
"While the benchmarks have seen some time correction in August, the medium to long term outlook for Indian equities remains positive," said Sonam Srivastava, founder and fund manager at Wright Research.
{{/usCountry}}"While the benchmarks have seen some time correction in August, the medium to long term outlook for Indian equities remains positive," said Sonam Srivastava, founder and fund manager at Wright Research.
{{/usCountry}}The current phase provides opportunity for investors to rebalance portfolios and identify potential entry points, Srivastava said.
Private lender IndusInd Bank gained about 2% after central bank approval to set up a wholly-owned asset management business. The stock was the top Nifty 50 gainer.
IndusInd Bank was also the top gainer in the bank index and financials, which rose about 0.75% each.
Polycab India was about 4% higher after UBS initiated coverage with a "buy" rating, as the company benefits from long-term electrification growth.
SeQuent Scientific climbed 7% on getting pre-qualification approval from World Health Organization for a drug to treat parasitic infections including tapeworm and roundworm.
Nucleus Software surged 18%, ahead of considering a share buyback plan on Thursday.
This article was generated from an automated news agency feed without modifications to text.