Mumbai: India's stock markets got a lift from upbeat Asian markets on Wednesday, inching towards their highest close in over two weeks even as the possibility of the US Federal Reserve hiking interest rates for the first time in almost decade loomed. Global investors are divided about the likelihood of a rate increase by the Fed at its two-day meeting starting later in the day, and US economic data published on Tuesday did little to either back, or douse, expectations of one.
"Once this uncertainty is over, markets will take off," said G. Chokkalingam, founder of Equinomics, a Mumbai-based research and fund advisory firm.
Indian investors are also hopeful that the Reserve Bank of India (RBI) would cut interest rates for a fourth time this year at its policy review on Sept. 29, after data earlier this week showed consumer inflation easing to the lowest on record. The BSE Sensex gained 1.07 per cent while the 50-share Nifty rose 0.96 per cent heading towards their highest close since Aug. 31.
Financial stocks led the gains. Housing Development Finance Corp rose 1.3 per cent, ICICI Bank gained 1.6 per cent while Axis Bank was up 2.7 percent. Sun Pharmaceutical Industries gained over 2 per cent on its acquisition of InSite Vision, an ophthalmic products drugmaker. Cadila Healthcare jumped 5.8 per cent while Lupin was up 1 per cent.
Export-oriented IT and pharma stocks were trading higher after overnight data in the US showed healthy growth in consumer spending. Infosys was up 0.5 per cent while HCL Tech rose 1.4 per cent.
