Indian shares open higher, led by IT, pharma stocks
Updates at 9:29 a.m. IST
BENGALURU, Sept 10 (Reuters) -Indian shares opened higher on Tuesday, led by information technology and pharma, and tracking a rebound in global stocks ahead of key U.S. inflation data and the Federal Reserve's interest rate decision.
The Nifty 50 index .NSEI was up 0.25% at 24,996.5 points, while the S&P BSE Sensex .BSESN rose 0.23% at 81,753.7, as of 9:29 a.m. IST.
"A renewed wave of dip buying has stimulated a rebound in stocks after a drop (on Monday and earlier on Tuesday),triggered by U.S. economic concerns," said Deepak Jasani, head of retail research at HDFC Securities.
Traders are now looking for U.S. inflation data for clues on the size of Fed rate cuts, said Jasani.
Wall Street equities closed higher overnight, bouncing back from a weekly drop on Friday after mixed labour market data.
The U.S. consumer price index, due on Wednesday, is expected to show that inflation remains on the path back tothe Fed's target.
The reading will be crucial to determine thesize of a likely Fedrate cut next week.
Asian markets were higher on Tuesday, though concerns over China's growth outlook capped gains. MKTS/GLOB
Barring heavyweightfinancials .NIFTYFIN, which logged marginal losses, all the other sectors advanced.
IT companies .NIFTYIT, which earn a significant share of their revenue from the U.S., gained 0.8%.
The pharmaindex .NIPHARM gained 1% after India's goods and services tax (GST) council recommended a reduction in tax rates on specific cancer drugs.
Snack makers like Gopal Snacks GOPA.NS, Prataap Snacks PRAT.NS and Bikaji Foods BIKA.NS rose about5% each after the GST council recommended cutting tax rate on "namkeen", or Indian savory snacks, to 12% from 18%.
The more domestically focussed small- .NIFSMCP100 and mid-caps .NIFMDCP100 rose about 1.1% each.
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Rashmi Aich and Sonia Cheema
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