Indian shares extend gains on easing interest rate outlooks

BENGALURU, Nov 6 (Reuters) - Indian shares rose on Monday, tracking gains in Asian peers as markets priced in earlier interest rate cuts in the United States and Europe.

The NSE Nifty 50 index (.NSEI) was up 0.50% at 19,326.50 as of 9:57 a.m. IST with 46 of its constituents in the green, while the S&P BSE Sensex (.BSESN) rose 0.47% to 64,665.67.

Real estate stocks (.NIFTYREAL) hit fresh record highs for the third session in a row, rising 1.5%, and led sectoral gains.

Information technology (IT) stocks (.NIFTYIT) gained 0.7% after data pointed to a cooling U.S. labour market, which heightened hopes that the Federal Reserve is done with rate hikes.

IT companies earn a significant share of their revenue from the U.S, but high interest rates have impacted client spending.

The Fed had held its interest rate steady on Nov. 1, spurring a global market rally.

The odds of a 25 basis points rate cut by June 2024 rose to 81%, the CME FedWatch tool showed, and markets imply around an 80% probability of the European Central Bank cutting rates by April.

Broader Asian markets also extended gains, with the MSCI Asia ex-Japan index (.MIAPJ0000PUS) rising nearly 2%.

\“The momentum on the upside for Indian markets is likely to continue,\” said Anita Gandhi, director at Arihant Capital Markets.

\“The jobs data in the U.S. implies that the Fed will have to take action to support the economy, easing rate worries,\” Gandhi added.

Among individual stocks, Interglobe Aviation (INGL.NS) rose 2% after the airline operator posted a second-quarter profit on steady demand for air travel.

JK Cement (JKCE.NS) jumped 4.5% after the cement maker reported rise in net profit in the September quarter.

Bank of Baroda (BOB.NS) lost 3.5% despite reporting strong quarterly results, as the lender terminated the employment of its chief digital officer as part of addressing deficiencies in its mobile application.