Indian stocks steady ahead of key US data

Indian shares remained relatively unchanged on Tuesday, as investors awaited key US economic data that could influence the extent of the Federal Reserve’s interest rate cuts later this month.

The Nifty 50 index remained stable at 25,259.3 points, while the S&P BSE Sensex dipped slightly 0.1 per cent to 82,490.79. The blue-chip Nifty 50 saw a 4.7 per cent gain over a 13-session rally, its longest ever until Monday.

“There are not many positive local levers for markets to sustain highs,” said Aishvarya Dadheech, founder and chief investment officer at Fident Asset Management.

Investors are waiting for US economic data, like the ISM manufacturing survey and jobs report, to gauge the Fed’s next move on interest rates. Personal consumption expenditure data from last week hinted a potential smaller rate cut in September.

Markets are expecting a 25 basis-point rate cut, with a 31 per cent chance of a 50 basis-point reduction. Lower US interest rates typically lead to increased foreign fund inflows into emerging markets such as India.

Attribution: Reuters

Subediting: M. S. Salama