India Investors Turn Cautious Ahead of Rate Decisions from Major Central Banks

Arjun Pandit
12 Dec, 2023
Mumbai

India stocks advanced amid a positive economic backdrop and a steady flow of funds from domestic and international investors.

The Nifty and the Sensex indexes gained more than 0.3%, and rate-sensitive stocks were among the leading gainers in Tuesday's trading.

In overnight trading in New York, benchmark indexes closed higher after lackluster trading, and investors awaited the release of consumer price inflation later on Tuesday.

The Federal Reserve is widely expected to hold rates at the end of its 2-day policy meeting on Wednesday, and the Bank of England, the European Central Bank, the Swiss National Bank, and the Norges Bank are scheduled to announce their decisions later in the week.

Asian markets advanced following the gains in New York, and the benchmark indexes in Tokyo, Shanghai, Hong Kong, and Seoul advanced.

Japan's producer price index in November edged up 0.3% from a year ago, slower than the upwardly revised 0.9% in October, the Bank of Japan reported Tuesday.

The producer price index rose at the slowest pace since February 2021 and fell for the eleventh month in a row.

Tech stocks and exporting companies were among the gainers in Tokyo trading, and the yen hovered near 145 against the U.S. dollar.

 

India Indexes and Yields

The Sensex index increased 5.24 points to 69,933.99, and the Nifty index rose 11.15 points to 21,008.35.

On the Mumbai stock exchange, 221 stocks traded at their 52-week highs and 7 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds held firm at 7.27%, and the Indian rupee hovered near ₹83.35 against the U.S. dollar.

The gold price increased by 0.3% to ₹61,305 per ten grams, and silver rose by 0.4% to ₹72,145 per kilo.

Crude oil increased by 0.2% to ₹6,021 per barrel, and natural gas rose by 1.7% to ₹202.20 per thermal unit.

 

India Stock Movers

Dixon Technologies jumped 3% to ₹6,571.50 after the company's subsidiary Padget Electronics won a contract to manufacture laptops and notebooks from Taiwan-based Lenovo.

J&K Bank soared 8% to ₹135.20 after the financial company launched ₹750 crore institutional offering with a floor price of ₹112.50 per share.

Mankind Pharma declined 2.6% to ₹1,868.0 on a CNBC-TV 18 report that several investors are looking to sell the stock in a block deal.

Beige Investment, Cairnhill CIPEF, Cairnhill CGPE, Hema CIPEF, and Link Investment Trust are reported to be among the likely sellers.

Infosys declined 0.7% to ₹1,478.40 after the company appointed Jayesh Sanghrajka as chief financial officer.

Chief Financial Officer Nilanjan Roy resigned to pursue other personal goals outside the company.

DLF decreased 0.4% to ₹664.15, and chief financial officer Vivek Anand tendered his resignation.

Sun Pharmaceutical decreased 0.9% to ₹1,230.20, and the company raised its offer price to acquire outstanding shares of its U.S. subsidiary Taro Pharma.

Rail Vikas Nigam added 1.4% to ₹180.75 after the company won an order worth ₹543 crores from the Madhya Pradesh Metro Rail Corporation.

BLS International jumped 6.9% to ₹316.80 after the company won an order to process visa and passport services from the High Commission of India in Canada.