Shares log sixth straight session of gains as Fed mins fuel US rate cut hopes

Shares advanced on Thursday, tracking global peers, after minutes of the US Federal Reserve's latest policy meeting signalled a rate cut as early as next month.

The NSE Nifty 50 index rose 0.17 per cent at 24,811.5. The S&P BSE Sensex added 0.18 per cent to 81,053.19.

Both the benchmarks have logged gains for six sessions in a row, adding about 2.8 per cent each.

"US economic data over the last week has abated fears of a likely recession, powering the sustained rise, while the minutes of the Fed's latest policy meeting has boosted the enthusiasm. Now, a Fed rate cut in September looks like a certainty," said Saurabh Jain of SMC Global Securities.

Other Asian markets also rose, with the MSCI Asia ex-Japan index adding 0.3 per cent. European markets opened higher.

Investors await Fed Chair Jerome Powell's address on Friday, which could provide confirmation of a rate cut in September.

Domestic institutional investors have been net buyers over the last 14 sessions, cushioning foreign outflows.

Seven of the 13 major sectors advanced, on the day. The more domestically focussed small- and mid-caps rose about 0.2 per cent and 0.7 per cent, respectively.

High weightage financials added 0.45 per cent. Consumer stocks gained 0.62 per cent to a record high.

Dabur gained about 2 per cent and was among the top gainers in consumer index.

The company signed deal with the state of Tamil Nadu to set up a manufacturing facility, scaling-up investment to 4 billion rupees(about $48 million) over five years.

TVS Motor gained 2.84 per cent to a record high. The company which launched a variant of its mid-ranged scooter on the day, was the top gainer in auto index.

Interglobe Aviation jumped 4.26 per cent after HSBC raised target price and Jefferies upgraded the stock to "buy" from "hold", citing steady earnings.