India and Asian Markets Rebound After Oil Prices Ease Amid Rising Global Supply

Arjun Pandit
09 Jan, 2024
Mumbai

Stocks in Mumbai advanced after crude oil prices dipped in international markets and fueled the prospects of lower inflation and interest rate cuts.

The Sensex and Nifty indexes jumped more than 0.4% after Saudi Arabia lowered its crude oil delivery price in February to Asia on softening demand and rising supplies from the U.S.

Saudi Arabia cut the premium on benchmark Arab crude to between $1.50 and $2.0 a barrel, dipping the international price to near $70 a barrel.

Moreover, tech stocks soared in overnight trading in New York, driving the tech-heavy Nasdaq Composite up 2.2% and the S&P 500 index up 1.4%.

 

Asian Markets Advance, Stimulus Hopes lift China Stocks

Asian markets generally traded higher following the advance in New York and reversal in trading across Europe.

The Nikkei index gained 1.2% to 33,789.56 after tech stocks gained, reflecting the surge in tech stocks in New York. Markets in Japan were closed on Monday and gained sharply in early trading.

The index earlier touched a 33-year high after exporters, retailers, and tech stocks were among the leading gainers.

Advantest Corp. gained 4%, Tokyo Electron added 3.3%, and Screen Holdings increased 1.6%.

The average household spending in Japan in November declined 2.9% to 286,992 yen, the Ministry of Internal Affairs and Communications reported Tuesday.

The average monthly household income decreased by 4.7% to 494,181 yen.

The Kospi index in Seoul jumped as much as 0.7% in early trading but lost momentum in late afternoon and fell 0.3% to 2,556.90.

The Bank of Korea is set to announce its rate decision on Thursday, and economists are anticipating the central bank to hold its key lending rate of 3.5% for the ninth time in a row.

Stocks in Hong Kong advanced 0.3% to 16,277.09, and the Shanghai Composite Index gained -.2% to 2,894.28 after Beijing hinted at stimulus measures to support the faltering economic growth.

The People's Bank of China is likely to lower the reserve ratio for banks, cut the medium-term lending rate next week, and open market operations, according to comments from Zou Lan, director of monetary policy at the central bank, reported by state-run Xinhua News Agency.

 

India Indexes and Yields

The Sensex index increased 570.02 points to 71,925.24, and the Nifty index rose 176.65 points to 21,688.75. 

On the Mumbai stock exchange, 367 stocks traded at their 52-week highs and 5 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds eased 7.18%, and the Indian rupee edged lower to ₹83.05 against the U.S. dollar.

The gold price increased by 0.3% to ₹62,250 per ten grams, and silver rose by 0.1% to ₹72,490 per kilo.

Crude oil increased by 0.7% to ₹5,903 per barrel, and natural gas advanced by 1.6% to ₹240.50 per thermal unit.

 

India Stock Movers

Bajaj Auto increased 2% to ₹7,123.05 after the company announced a stock repurchase plan of ₹4,000 crore.

Bajaj Finserv rose 0.2% to ₹1,700.15, and the company's subsidiary, Bajaj Allianz General Insurance, collected a gross direct premium of ₹1,425 crore in December.

FINO Payments Bank jumped 4% to ₹302.75 after the company applied for a small finance bank license with the Reserve Bank of India.

Tata Motors increased 0.7% to ₹794.95, and the company's subsidiary Jaguar Land Rover sales in the December quarter increased to 101,043 units, the highest in eleven quarters.

Metropolis Healthcare edged up 0.06% to ₹1,661.0 after the healthcare service provider said revenue in the December quarter increased by 12%.

The quarterly revenue increase was largely driven by a 9% increase in patient count.

Adani Enterprises advanced 1.7% to ₹3,014.25 after the company's subsidiary, Mumbai International Airport, won the arbitration case against the Airports Authority of India.

MIAL is not required to make monthly payments to AAI for the period between March 13, 2020, and February 28, 2022, citing force majeure in place during the COVID-19 pandemic period.

BEML gained 0.2% to ₹3,175.05 after the company won an order worth ₹330 crore from the defense ministry.

IRB Infrastructure Developers soared 10.2% to ₹46.40 after the company said toll revenue in December rose 26% from a year ago.