India Indexes at Record New Highs after State Election Results

Arjun Pandit
04 Dec, 2023
Tokyo

Stocks on Dalal Street surged following the results of the state elections.

The Sensex index and the Nifty index jumped more than 1% in early trading after the ruling party, the BJP, clinched a solid majority in three of the five state elections.

The BJP is set to form government in Rajasthan, Madhya Pradesh, and Chhattisgarh but trailed Congress in Telangana and local parties in Mizoram.

Market sentiment was further bolstered by the decline in U.S. Treasury yields in Friday's trading, supporting the view that the U.S. Federal Reserve is likely to hold rates at its next meeting ending on December 13.

Closer to home, the Reserve Bank of India is widely expected to hold rates at the end of its policy meeting on December 8.

 

India Indexes and Yields

The Sensex index increased 982.45 points to 68,463.64, and the Nifty index rose 297.0 points to 20,566.30.

On the Mumbai stock exchange, 253 stocks traded at their 52-week highs and 15 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds edged up to 7.27%, and the Indian rupee weakened to ₹83.32 against the U.S. dollar.

Gold advanced in Mumbai trading and soared as much as 3% in international trading following the decline in the U.S. dollar in the hopes that the U.S. Federal Reserve is likely to leave rates unchanged on December 13.

The gold price increased by 0.6% to touch a record high of ₹63,934 per ten grams, and silver advanced by 0.2% to ₹78,244 per kilo.

Crude oil decreased by 1.9% to ₹6,162 per barrel, and natural gas fell by 3.7% to ₹227.60 per thermal unit.

Both the WTI and Brent crude oil prices are down 6.5% and 7.0% in the year so far.

 

India Stock Movers

Reliance Industries advanced 0.9% to ₹2,416.40 and Indian Oil Corporation added 3.7% to ₹115.35 on a report that Venezuela has resumed shipments to India following the easing of the U.S. sanctions.

India is the second-largest export destination for Venezuelan crude oil after China, but shipments from the OPEC member have been inconsistent because of a lack of production stability.

Adani Ports & Special Economic Zone jumped 5.5% to ₹873.90 after the cargo volume jumped 42% in November from a year ago, according to filings with exchanges.