BENGALURU (Reuters) - Indian shares are set to hit all-time highs on Thursday, tracking a global rally after the U.S. Federal Reserve Chair Jerome Powell hinted at a possible interest rate cut in September, although Infosys could be a drag on the market.
The GIFT Nifty was at 25,105.5 points as of 8:10 a.m. IST, suggesting the Nifty 50 will open above its Wednesday's close of 24,951.15.
Asian markets joined the rally that started on Wall Street overnight after the Fed held interest rate steady as expected but Powell spoke of a "growing sense of confidence" that rate cuts could start in September, also as expected. [MKTS/GLOB]
"It's now almost certain that there will be a rate cut in the U.S. in September, which is very good from an emerging markets perspective, in terms of foreign inflows," said Pramod Gubbi, co-founder of Marcellus Investment Managers.
"For now, it means higher foreign inflows into India which will add to liquidity comfort."
In India, IT companies in particular could rally after months of pressure due to lower spending by U.S. clients.
On the day, however, Infosys, India's No.2 IT company, might come under some pressure as it got a $4 billion tax bill related to services in some of its overseas branches.
The company's U.S.-listed shares fell 2.12% overnight.
STOCKS TO WATCH
** Tata Steel posted a rise in quarterly profit and set aside 173.47 billion rupees ($2 billion) as contigent liability after a recent court judgement that upheld the Odisha state government's power to levy cess on minerals.
** Coal India beat quarterly profit estimates on higher volumes and lower costs.
** Bharat Forge said its unit secured a defence license from the government.
** Vedanta got approval from the stock exchanges to split into six independent companies. ($1 = 83.6940 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Savio D'Souza)
