Sensex and Nifty Indexes Trim Early Losses

Arjun Pandit
07 Dec, 2023
Mumbai

Stocks in Mumbai declined after rallying for three days in a row this week.

Benchmark indexes decreased 0.4% in trading, and investors are awaiting the interest rate decision from the Reserve Bank of India on Friday.

Investors widely believe that the central bank will hold rates steady for the third time in a row and drain liquidity in the financial system.

Market indexes were under pressure after extending gains from the previous four weeks in a row following strong economic growth, robust holiday spending, and weakness in crude oil prices in international markets.

Despite Thursday's market weakness, the Sensex and the Nifty indexes are set to advance more than 3% this week, extending the rally to the sixth consecutive week.

Crude oil edged lower to a 5-month low amid rising U.S. supplies in global markets and uncertainties about the latest production cuts announced by the OPEC+.

In overnight trading, market indexes in New York edged lower after private sector payroll growth slowed and investors turned cautious ahead of the release of nonfarm payroll data on Friday.

U.S. labor market expansion is slowing after the lagged impact of recent rate hikes, and investor sentiment has shifted in support of a soft landing, meaning simultaneous moderating of economic growth but not a recession and cooling of inflation to the Fed's target rate of 2%.

 

China's trade surplus expanded in November.

China's exports unexpectedly rose 0.5% to $291.9 billion in November, after falling for six months in a row, amid signs of a recovery in international demand.

Imports fell 0.6% to $223.5 billion, and the trade surplus advanced to $68.4 billion from $66.5 billion a year ago, China's General Administration of Customs reported Friday.

 

India Indexes and Yields

The Sensex index decreased 251.11 points to 69,402.62, and the Nifty index fell 58.65 points to 20,880.0.

On the Mumbai stock exchange, 159 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 7.24%, and the Indian rupee weakened to ₹83.34 against the U.S. dollar.

The gold price increased by 0.03% to ₹62,423 per ten grams, and silver declined by 0.2% to ₹74,720 per kilo.

Crude oil increased by 0.3% to ₹5,835 per barrel, and natural gas fell by 0.3% to ₹214.40 per thermal unit.

 

India Stock Movers

Paytm dropped 20% to ₹650.45 after the company said it plans to slow loan approvals under ₹50,000 after the Reserve Bank of India tightened lending rules last week.

Axiscades Technologies jumped 4% to ₹584.55 after the company acquired a 100% stake in Hyderabad-based Epcogen, the provider of engineering services for petroleum and power companies.

Delta Corp. increased 2.7% to ₹142.70 after the Calcutta High Court issued an order to a unit of the company not to act on the demand by the Goods and Services Tax authorities for the collection of ₹6,834 crore.

Bharti Airtel declined 1.4% to ₹1,010.05, and Warburg Pincus is looking to sell 17.5 million, or 1.75 crore, shares in a block deal for $211 million, or about ₹1,760 crore, at a floor price of ₹1,005 per share.

IDFC First Bank declined 3.2% to ₹87.50, and a fund controlled by Warburg Pincus is looking to sell a 1.3% stake in the bank for $100 million, with a floor price of ₹85.70 per share.

Bharat Electronics increased 1.6% to ₹159.05 after the company won a ₹580 crore order for supplying artificial magnetic conductors for radars from the Indian Army.

IRCON International declined 7.8% to ₹158.60 after the central government launched an offer to sell up to an 8% stake in the company over a two-day period starting Thursday.

Adani Ports & Special Economic Zone added 2% to ₹1,037.25, and the company is in advanced talks with Shapoorji Pallonji to acquire Gopalpur Ports in Odisha for as much as ₹1,200 crore.

Kothari Petrochemicals dropped 0.8% to ₹158.95 after the company said its operations located in Manali Industrial Area, Chennai, were temporarily disrupted by Cyclone Michaung.