India Stocks Face Selling Pressure, Industrial Production Growth Jumps

Arjun Pandit
13 Dec, 2023
Mumbai

Stocks in Mumbai lost early gains after investors reviewed the latest global and domestic macroeconomic data.

India's industrial output growth soared to a 16-month high after double-digit increases in power, mining, and manufacturing production.

However, consumer price inflation rebounded to 5.55% in November from 4.87% in October after food price inflation accelerated, the National Statistics Office reported on Tuesday.

Overall inflation accelerated to a 4-month high after food price inflation jumped to a three-month high of 8.7% after agriculture output fell because of four-month low monsoon rains in 2023.

The Sensex and the Nifty indexes edged up after crude oil plunged nearly 4% in New York trading on rising supplies from the U.S., Canada, Brazil, and Guyana in the face of weak demand growth from China.

India imports more than 60% of its energy needs, and lower oil prices reduce the country's import bill.

In overnight trading, market indexes in the U.S. reached a new 52-week high after consumer price inflation edged lower to 2.1% in November from 3.2% in October.

The softer inflation reduces pressure on the Federal Reserve to keep higher interest for longer and maneuver the economy to a soft landing while cooling inflation.

 

Industrial Output Growth Jumped to 16-month High

India's industrial production increased by 11.7% in October, a 16-month high, the National Statistics Office reported late Monday.

The index advanced after manufacturing, and power output increased by double digits in the month.

Manufacturing output increased 10.4% from a year ago when the output contracted 5.8%, power generation soared 20.4% from a year ago, and mining output advanced 13.1%.

 

India Indexes and Yields

The Sensex index decreased 111.51 points to 69,439.53, and the Nifty index fell 39.75 points to 20,866.50.

On the Mumbai stock exchange, 171 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 7.26%, and the Indian rupee hovered near ₹83.37 against the U.S. dollar.

The gold price decreased by 0.1% to ₹61,108 per ten grams, and silver fell by 0.4% to ₹71,591 per kilo.

Crude oil decreased by 0.1% to ₹5,758 per barrel, and natural gas fell by 3.9% to ₹188.60 per thermal unit.

 

India Stock Movers

In Wednesday's trading, tech services exporters were among the leading decliners, and automakers and consumer product makers led the gainers.

TCS, Infosys, Wipro, and Tech Mahindra declined between 1% and 2.5%.

HDFC Bank, Kotak Mahindra, and the State Bank of India declined by around 0.3%.

Mankind Paharma rose 0.1% to ₹1,855.90, and three private equity firms sold 7.9% stakes in the company worth ₹5,589 crore.

Max Healthcare Institute rose 1.5% to ₹710.35 and extended gains for the fifth day in a row after the company agreed to acquire Lucknow-based 550-bed Sahara Hospital for ₹940 crore.

Paul Merchants rose 2.0% to ₹3,755.05 after the company board is scheduled to meet on December 20 to consider a stock bonus issue.

Axis Bank declined 1% to ₹1,119.35 on a report that the private equity firm Bain Capital is looking to sell a 1% stake in the company.