Stock mkt benchmark indices trade higher tracking rally in global peers amid US Fed rate cut hopes

New Delhi: Benchmark equity indices Sensex and Nifty began the trade on an optimistic note on Tuesday in-tandem with a rally in global markets amid hopes of a US Fed rate cut later this month.

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A rebound in IT stocks also drove the markets higher during the initial trade.

From the Sensex firms, Infosys, Tech Mahindra, Tata Consultancy Services, HCL Tech, Adani Ports and Larsen & Toubro were among the major gainers.

"Nifty is expected to trade with a positive bias despite volatility, supported by hopes of a quarter-point Fed rate cut on 17th September and the possibility of further cuts in the year’s remaining meetings, keeping bears at bay," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index and Hong Kong's Hang Seng traded in positive territory while Shanghai's SSE Composite index quoted lower.

"Market is slowly regaining momentum on expectations of earnings boost from GST reforms. Clearly, autos are the major beneficiaries of the GST cut, and rightly, the market has responded positively. News of huge demand for automobiles post-September 22 will keep the auto stocks resilient despite the recent run up," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,170.35 crore on Monday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 3,014.30 crore, according to exchange data.

Global oil benchmark Brent crude climbed 0.51 percent to USD 66.36 a barrel.

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