Mumbai Stocks Lacked Direction After Rallying Seven Consecutive Weeks

Arjun Pandit
18 Dec, 2023
Mumbai

Stocks in Mumbai struggled in Monday's trading amid Asia-wide weakness.

The benchmark index edged lower after advancing for seven weeks in a row, and investors stayed on the sidelines ahead of the central bank decisions in China and Japan this week.

The Bank of Japan is widely expected to hold its ultra-loose monetary policy intact, and investors are hoping to get additional insights into the future rate path.

Policymakers in Japan have kept interest rates close to zero, the only major central bank to keep rates unrevised in the last eighteen months, increasing the rate differential with the U.S. and the Euro Area and putting additional pressure on the Japanese yen.

The People's Bank of China is set to announce its loan prime rate, and investors are hoping that the central bank will also provide additional stimulus and support the residential property market.

In Friday's trading, market indexes in New York closed mixed but extended gains for the seventh week in a row amid hopes of sooner-than-expected rate cuts in 2024.

European markets also extended gains for the fifth week in a row, despite the deepening woes in the manufacturing sector in the eurozone.

Moreover, the yields on bonds in the eurozone dropped to the level last seen in mid-January, and the euro held below $1.10 as the European Central Bank reiterated its focus on bringing down inflation to 2%, despite the growing economic weakness.

 

India Indexes and Yields

The Sensex index decreased 26.68 points to 71,457.07, and the Nifty index fell 1.2 points to 21,455.45.

On the Mumbai stock exchange, 144 stocks traded at their 52-week highs and 8 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds held firm at 7.16%, and the Indian rupee hovered near ₹82.93 against the U.S. dollar.

The gold price decreased by 0.3% to ₹62,009 per ten grams, and silver edged up by 0.06% to ₹74,568 per kilo.

Crude oil decreased by 0.03% to ₹6,008 per barrel, and natural gas fell by 0.2% to ₹210.10 per thermal unit.

 

India Stock Movers

Tech services providers were among the leading gainers, and banks were among the leading decliners in Monday's trading.

State Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra, Axis Bank, and Bank of Baroda fell around 0.5%.

TCS, Infosys, Wipro, Tech Mahindra, and HCL advanced between 0.2% and 0.6%.

Zee Entertainment decreased 2.6% to ₹270.40, and the company sought an extension for its proposed merger with Sony India on December 21.

The merger proposal has won all regulatory approvals, and two companies are deadlocked in finalizing who will lead the merged company.

Solar Industries India declined 2.7% to ₹6,731.55 after the company said an explosion at its manufacturing plant in Nagpur, Maharashtra, killed nine people and injured several others on Sunday.