FX.co ★ India Stocks Rise to Start the Week

The BSE Sensex increased by 258 points, or 0.3%, reaching 80,969 in Monday's morning session. This rise followed a stagnant close on Friday and was driven by continued positive sentiment from GST rate cuts, coupled with rising expectations of potential Federal Reserve interest rate reductions later this month. This anticipation is spurred by a recent weak U.S. employment report. The broader market index reached its highest point in two weeks, with gains observed across most sectors, prominently in automotive, metals, real estate, and oil & gas sectors. Concurrently, the Nifty 50 rose by 0.4%, surpassing the 24,800 mark. Further optimism was bolstered by Finance Minister Nirmala Sitharaman's statement, reassuring that the GST rate cuts would not adversely affect public finances and would instead promote GDP growth. Nonetheless, traders remained vigilant ahead of the release of both U.S. and domestic CPI data for August, expected later this week. The hope is that easing inflation could justify additional interest rate cuts by the RBI. Leading the list of top performers were Tata Motors (up 3.0%), Tata Steel (up 2.1%), Mahindra & Mahindra (up 2.0%), JSW Steel (up 1.6%), and Adani Ports (up 1.2%).