BENGALURU, Oct 31 (Reuters): Indian shares scaled to an over one-month high on Monday, as IT and automobile stocks rose, tracking gains in broader Asia on hopes that central banks may slow the pace of interest rate hikes.
The NSE Nifty 50 index rose 0.96% to 17,957.10 as of 0450 GMT, and the S&P BSE Sensex advanced 1.01% higher at 60,565.05.
For the month as of last close, the indexes have added more than 4% each on the back of corporate earnings reports and hopes of a less-hawkish stance from major central banks.
"The U.S. economy's strength is indicating a lower probability of an immediate U.S. recession and indications that inflation is plateauing. This might enable the Fed to slightly moderate their hawkish stance," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Canadian and Australian central banks have hiked rates below expectations and if this trend spreads, that will favour continuation of the rally in the short-term, Vijayakumar added.
Investors this week will be looking for outcomes of policy meetings of the U.S. Federal Reserve and the Bank of England.