FX.co ★ Indian Stocks Edge Higher in Morning Trade

The BSE Sensex experienced an uptick of 173 points, representing a 0.2% increase, reaching 84,564 in early trading on Thursday. This rise broke a three-day trend of declines, buoyed by gains on Wall Street after the Federal Reserve reduced interest rates, although it indicated fewer cuts through 2026. The market's focus is also on the upcoming November inflation data release scheduled for Friday, which is expected to influence the Reserve Bank of India's (RBI) policy on interest rates. Predictions suggest inflation will accelerate to 0.7%, yet it remains within the RBI's target range for the tenth consecutive month. This sustained level of inflation fuels optimism for additional interest rate reductions. However, persistent foreign capital outflows and the ambiguity of the US-India trade agreement restrained potential gains. In particular, the metals sector saw an increase of 0.8%, driven by a depreciating US dollar following the Federal Reserve's rate cut. Other sectors showing positive performance included automotive, technology, financial services, and banking industries. Leading the early gains were Tata Steel and Kotak Mahindra Bank, each climbing 1.2%, followed by Maruti Suzuki at 1.0%, Infosys at 0.6%, and IndusInd Bank at 0.5%.