(Updates levels as of 10:22 a.m. IST)

By Kashish Tandon

BENGALURU, June 12 (Reuters) - Indian shares opened

higher on Wednesday, boosted by gains in U.S. interest

rate-sensitive IT stocks ahead of the U.S. inflation reading and

the Federal Reserve's updated rate projections, while the focus

will also be on local inflation.

The NSE Nifty 50 index was up 0.5% at 23,384.20 as

of 10:22 a.m. IST. The S&P BSE Sensex 0.5% to

76,861.94.

The Nifty 50 rose as much as 0.65% to a record high during

the session.

With the newly elected government set up and cabinet

portfolios distributed, the market is now factoring in some

broad budget expectations, said Avinash Gorakshakar, head of

research at Profitmart Securities.

The more domestically focussed small-caps and

mid-caps rose about 0.9% each, while all but one

of the 13 major sectors logged gains.

IT companies, which count the U.S. as a key

revenue geography, jumped 1.25%.

U.S. headline consumer price inflation is expected to have

eased last month, but a stronger-than-expected jobs report has

raised the prospect of inflation remaining sticky while growth

stays strong.

The odds of a Fed rate cut in September have fallen to 56%,

from 78% a week ago, and the focus will be on policymakers'

updated "dot plot" and comments for clues on how soon cuts could

begin.

Meanwhile, India's inflation is expected to have picked up

to 4.89% last month, snapping a four-month downward trend,

suggesting the Reserve Bank of India is still months away from

starting to cut rates.

The rate-sensitive financials rose 0.4%, while

inflation-sensitive consumer stocks dropped 0.37%

to be the only sector in the red.