BENGALURU, Dec 1 (Reuters) - Indian shares extended their rally for eighth straight session on Thursday, after U.S. Federal Reserve Chair Jerome Powell's remarks boosted bets of a slowdown in the pace of interest rate hikes.
Both benchmarks rose about 0.7% to fresh all-time highs during the session.
On Wednesday, Powell said moderate pace of rate hikes may come as soon as December meeting, triggering a rally across markets globally. Although, he cautioned that the fight against inflation was far from over.
Eyes will now be on the Reserve Bank of India's next policy decision, which is due on Dec.7.
Market is expecting a small hike of 35-40 bps, but it should not have much of an impact because the inflation is cooling and crude prices have come down, AK Prabhakar, Head of Research at IDBI Capital said, adding he expects a 2-4% rise for benchmark Nifty to 19,800-20,000 levels by year-end.
IT stocks could rally further following a heavy correction, Prabhakar added.
IT index (.NIFTYIT) was the top sectoral gainer on the day, adding 2.4%. It has fallen 19.59% year-to-date, compared to 6.73% rise in the benchmark Nifty 50 index.
(This story has been refiled to remove the reference to Eicher Motors sales in paragraph 11)
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