Indian shares opened higher today, with the Nifty 50 rising ~0.28% to 25,074.45 and the BSE Sensex up ~0.26% to 81,758.95, led by optimism around U.S. rate cuts.
Softer U.S. jobs data dampening rate hike fears, combined with inflation worries, strengthened expectations that the Fed may cut rates in coming meetings.
Gains were broad-based: 15 of 16 major sectors moved into positive territory at market open, small-caps and mid-caps both up ~0.4%.
The IT sector led the rally, with Infosys surging ~2% following its buyback announcement, helping lift sectoral indices.
Exporters and global-linkage sectors are benefitting from hopes of lower U.S. interest rates reducing cost of capital and boosting risk asset inflows.
The rupee also strengthened modestly to ₹88.3025/USD, recovering from record lows of ~₹88.4425, helped by rising forward premiums and rate cut expectations.
Forward premiums for USD/INR are now at their highest in about four months, signalling increased hedging and demand expectations among corporates and traders.
Nonetheless, concerns linger: new U.S. tariffs on Indian imports of Russian oil, and weak portfolio inflows, continue to weigh on broader macro sentiment.
Investors are also keeping a close eye on the upcoming SEBI board meeting for clarity on proposed market reforms and regulatory direction.
In summary, sentiment is cautiously positive—markets are rallying on rate-cut hopes, but underlying risks suggest that any slip in global cues could reverse gains.