China Stocks Extend Losses, Suzuki to Double Capacity In India

Arjun Pandit
10 Jan, 2024
Mumbai

In Asian trading, most markets traded down amid U.S. interest rate uncertainties, on-going property woes in China, and the lack of stimulus measures from the Chinese government.

Benchmark indexes in Tokyo edged higher by 1.9% to 34,402.07 on the expectation that the Bank of Japan will maintain its ultra-loose policy stance, despite the early signs of a rise in inflation.

Average cash earnings in Japan rose 0.2% in November from the previous month, the Ministry of Health, Labor, and Welfare reported Wednesday.

The wage gains slowed from a 1.5% increase in October and lagged behind the increase of 2% in core inflation in November, marking the 20th consecutive month of decline in real wages after adjusting for inflation.

Maruti Suzuki India will invest about $4 billion to set up its second manufacturing facility in Gujarat, Suzuki Motor Corporation President Toshihiro Suzuki said on Wednesday.

Toshihiro announced the investment plan at the 10th Vibrant Gujarat Global Summit and added that the manufacturing plant will double its annual production capacity to 2 million vehicles in Gujarat. 

The company currently manufactures 2.2 million vehicles in plants based in Haryana and Gujarat, and the automobile company is looking to double its capacity by the end of this decade.  

China stocks continue to drift lower in the new year amid consumer confidence and the lack of a meaningful policy response from the government. 

The benchmark index in Hong Kong declined for the seventh session in a row.  

The Hang Seng index declined 0.7% to 16,077.01 and extended this year's loss to 5.5%, the worst start of the year in about two decades. 

In Shanghai, the SSE Composite decreased 0.3% to 2,884.99 and extended this year's loss to 3% amid deepening property market woes across the mainland. 

China also revved up cross-strait tensions ahead of a presidential election in Taiwan this Saturday.  

 

Earnings Jitters Keep India Stocks Down

Caution prevailed on Dalal Street ahead of the start of earnings releases and weak global market signals.

Benchmark indexes The Nifty and Sensex indexes looked down in early trading, and investors focused on familiar large-cap names.

TCS, Infosys, HCL, and Wipro were in focus ahead of the release of quarterly results amid weak sales growth expectations as the leading companies face tough macroeconomic headwinds.

In Tuesday's trading, the Nifty and the Sensex indexes lacked direction and gave up early gains despite strong signals from markets in the U.S. and Europe.

Crude oil remained volatile with an upward bias as hostile conditions persisted in the Red Sea and leading shipping companies diverted most of the shipments away from the region.

 

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, 230 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 eased 7.18%, and the Indian rupee edged lower to ₹83.15 against the U.S. dollar.

The gold price increased by 0.08% to ₹62,227 per ten grams, and silver rose by 0.02% to ₹72,061 per kilo.

Crude oil increased by 0.02% to ₹6,035 per barrel, and natural gas fell by 1.9% to ₹266.40 per thermal unit.

 

India Stock Movers

Vedanta declined 2.5% to ₹255.45 after Moody's downgraded corporate group rating to Caa3 from Caa2 and rating on unsecured bonds to Ca from Caa3. The rating agency maintained a negative outlook on the company's debt.

Power Grid Corporation decreased 0.5% to ₹241.20, and the power distribution company is set to raise as much as ₹2,200 crore in a bond offering today.

Power Finance Corporation fell 2.2% to ₹385.80, and the company received approval from the Reserve Bank of India for setting up a finance company in GIFT city, Gujarat.

Shyam Metallics and Energy gained 0.6% to ₹641.65 after the company raised ₹1,385 crore through an institutional offering.

The company's offering attracted bids of 4,055 crore, about 3.5 times the offering size.

Delta Corp. decreased 2.4% to ₹146.95 after the casino operator reported quarterly results.

Revenue in the December quarter rose 15% from a year ago to ₹231.7 crore, and net profit decreased 59% to ₹34.5 crore.

KIOCL fell 2.7% to ₹358.80 after the company temporarily suspended operations at its Mangalore plant because of the lack of iron ore fines.

Polycab India rose 0.8% to ₹4,906.30 after the company refuted recent media speculation about tax evasion.

The company said it has not received any communication from the Income Tax Department following the recent property searches conducted by the government agency.