(Reuters) - Indian shares advanced for a fourth straight session on Thursday, inching up over half a percent, after a rate cut by the U.S. Federal Reserve in line with expectations, boosted investor appetite across the globe.
Broader Asian shares eked out minor gains with MSCI’s broadest index of Asia-Pacific shares outside Japan adding 0.2%.
Gains, however, were capped as Fed Chairman Jerome Powell signalled a pause in further rate cuts as there were several areas of strength in the U.S. economy.
“Sentiments have turned recently, most results are decent and there have not been any disappointments so far,” said Siddhartha Khemka, head of retail research at Motilal Oswal Securities.
“Growth is improving, festive demand has been better than expected, and the Fed rate cut is generally positive for emerging markets....the current momentum could continue on the back of positive factors.”
Indian shares have seen steady gains in the last few sessions buoyed by positive global cues, a strong set of corporate results and expectations of a better December quarter.
The Nifty PSU Bank index .NIFTYPSU, which tracks the country’s state-run lenders, rose as much as 2.52%, gaining the most among the 14 sectoral NSE indexes that were all trading in the green.
Shares of State Bank of India (SBI.NS) rose as much as 3.28% to their highest in over a month.
The Nifty Media index .NIFTYMED gained 1.65% while the Nifty FMCG index .NIFTYFMCG climbed over half a percent to its highest since September 2018.
The Nifty IT index .NIFTYIT rose nearly a percent after U.S. IT services and outsourcing company Cognizant Technology Solutions Corp (CTSH.O) forecasted a rise in quarterly profit on Wednesday, but added it would shut some content moderation business, resulting in about 6,000 job cuts.
Shares of Infosys Ltd (INFY.NS) gained 2.54% and was on track for their fifth straight session of gains.
United Bank of India (UBOI.NS) rose for a fifth consecutive day, surging as much as 16.85% after the lender posted strong quarterly results on Wednesday.
State-owned oil retailer Indian Oil Corporation Ltd (IOC.NS) was trading up as much as 1.09% ahead of releasing quarterly results.
Reporting by Chandini Monnappa in Bengaluru; Editing by Rashmi Aich