India Stocks Extend Weekly Gains Amid Economic Growth Optimism

Arjun Pandit
20 Dec, 2023
Mumbai

Stocks in Mumbai advanced on economic growth optimism, and the rupee traded down.

Benchmark indexes tracking large-cap, small-cap, and mid-cap stocks gained between 0.4% and 0.6%.

Market sentiment was dominated by optimism about the interest rate, the economic growth outlook, and sustained government investment in infrastructure.

Moreover, in overnight trading in New York, market indexes extended a 7-week rally on rate optimism and resilient consumer spending.

Japan's trade deficit plunged 62% to 0.77 trillion yen in November from 2.06 trillion yen a year ago, the Ministry of Finance reported in its preliminary report on Wednesday.

Merchandise exports fell 0.2% to 8.8 trillion yen, driven by weak exports to China.

Merchandise imports plunged 11.9% to 9.6 trillion yen, extending the decline to the eighth month in a row on lower energy prices.

Exports to India increased 3.8% from a year ago to 178 billion yen, and imports fell 4.5% to 62.5 billion yen, driving the trade surplus higher by 8.9% to 115.5 billion yen.

In November, Japan recorded its largest trade deficit with mainland China of 654 billion yen and its largest trade surplus with the U.S. of 804 billion yen.

 

India Indexes and Yields

The Sensex index decreased 168.07 points to 71,144.04, and the Nifty index fell 57.75 points to 21,360.25.

On the Mumbai stock exchange, 173 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 7.17%, and the Indian rupee hovered near ₹83.15 against the U.S. dollar.

The gold price increased by 0.2% to ₹62,251 per ten grams, and silver edged up by 0.3% to ₹75,017 per kilo.

Crude oil increased by 0.05% to ₹6,170 per barrel, and natural gas fell by 2.1% to ₹203.10 per thermal unit.

 

India Stock Movers

Varun Beverages soared 10.2% to ₹1,290.55 after the company said it plans to acquire South Africa-based The Beverage Company Limited for ₹1,320 crore.

The company also plans to invest up to ₹450 crore in building a manufacturing plant in Patratru, Jharkhand.

Bharat Petroleum Corporation, or BPCL, increased 0.9% to ₹453.75 after the company's board approved setting up a polypropylene plant at Kochi refinery for a cost of ₹5,044 crore.

Embassy Office Parks REIT decreased 0.1% to ₹335.21 after a report that Blackstone plans to sell its entire 23.6% stake in the company for $833 million.