Indian shares set to rise as Fed triggers rise in global stocks

BENGALURU, Nov 2 (Reuters) - Indian shares are set to open higher on Thursday, tracking a rise in global stocks after the U.S. Federal Reserve kept rates unchanged and Chair Jerome Powell hedged on the possible end of the rate hiking cycle.

Indias GIFT Nifty was up 0.86% at 19,214.50 as of 8:12 a.m. IST, over 200 points above the Nifty 50s (.NSEI) Wednesday close of 18,989.15.

Wall Street equities rallied overnight, with S&P 500 (.SPX) and Nasdaq Composite (.IXIC) adding more than 1% and 1.5%, respectively. Asian markets advanced, with the MSCI Asia ex-Japan index (.MIAPJ0000PUS) gaining 1.5%.

The Fed held policy rates steady in the 5.25%-5.50% range on Wednesday, with Powell saying that inflation had been coming down and pondering further rate hikes.

Powell added that the central bank was not sure if the financial conditions were restrictive enough already to control inflation.

U.S. 10-year bond yields fell to 4.766%, a two-week low. Elevated U.S. yields due to rate concerns had been a major drag on Indian equities over the past few weeks as it triggered foreign outflows, according to analysts.

Foreign portfolio investor (FPI) selling in Indian shares hit a nine-month high of 245.48 billion rupees ($2.95 billion) in October. They were also net sellers on Wednesday, offloading 18.17 billion rupees of shares on a net basis.

The benchmark Nifty 50 (.NSEI) lost nearly 3% in October, its worst month in 2023.

IT stocks (.NIFTYIT) will be in focus, having lost nearly 4% in October - their worst monthly performance in 2023 - as uncertainty in client spending in the U.S., a key market for IT companies, hurt their earnings and outlook.

Post-earnings market reaction to the results of two-wheeler maker Hero MotoCorp (HROM.NS), steel maker Tata Steel (TISC.NS) and consumer company Britannia Industries (BRIT.NS) will also be eyed.

STOCKS TO WATCH:

** Maruti Suzuki India : Car maker receives show cause notice from Agras local metrology department for not mentioning maximum retail price (MRP) on listed products for sale on the official website.

** GAIL (GAIL.NS), Bharat Petroleum Corp (BPCL.NS): GAIL signs deal with BPCL for a 15-year supply of propane for its upcoming petrochemical plant in Maharashtra; supply contract is estimated to have a value above 630 billion rupees.

** Godrej Consumer Products (GOCP.NS): Co posts nearly 21% year-on-year rise in net profit in September quarter.

** LIC Housing Finance (LICH.NS): Co reports nearly four-fold rise in profit in second quarter, aided by loan demand.

($1 = 83.2320 Indian rupees)