India Indexes Extend 3-Day Gains Ahead of RBI's Rate Decisions

Arjun Pandit
03 Dec, 2024
Mumbai

Market indexes on Dalal Street traded higher ahead of the rate decisions later this week. 

The Sensex index increased 0.3% to 80,453.88, and the Nifty index advanced 0.2% to 24,326.65. 

The Reserve Bank of India is expected to hold rates steady at the end of its three-day policy meeting on December 6. 

The rate-setting committee is likely to keep rates unchanged for the eleventh consecutive meeting amid economic slowdown in the fiscal second quarter and elevated food inflation. 

However, most economists and market watchers held out for a rebound in activities in the second quarter amid strong rural demand, an ongoing festival season, and a pick-up in government spending following the general elections. 

In international markets, crude oil lacked direction but retained a downward bias ahead of the OPEC+ meeting this Thursday. 

Oil traders are hoping that the group will postpone a previously announced production increase as demand growth from key customers in Asia remains weak amid a supply glut in international markets. 

The U.S. dollar continued to advance against the euro, and France's minority government is likely to collapse as early as this week if three political groups fail to agree on budget measures of €60 billion. 

 

India Stock Movers 

Punjab & Sind Bank increased 2.1% to ₹50.96, and the company is planning to raise as much as ₹3,000 crore through the sale of 10-year infrastructure bonds. 

Torrent Power gained 4% to ₹1,653.0, and the company launched a ₹5,000 crore secondary offering for institutional investors with a floor price of ₹1,555.75 per share. 

Cipla Ltd. jumped 2% to ₹1,538.55, and Samina Hamied and Rumana Hamied, two promoters of the company, sold their combined 1.72% stake for ₹2,111 crore. 

BNP Paribas, Societe Generale, Norges Bank, Bank of America Securities, UBS, Copthall Mauritius, and sovereign funds of Abu Dhabi and Singapore purchased shares in open market transactions. 

Coal India increased 0.4% to ₹423.35 after the mining company said coal production in November increased 1.7% to 67.2 million tons. 

The company said coal production in the first six months to November rose 2.4% from a year ago to 471 million tons.

Coal India accounts for 80% of domestic coal production. 

Adani Power declined 0.5% to ₹546.20, and Bangladesh halved its electric power purchase from the company, citing lower winter demand amid ongoing disagreement over unpaid dues totaling several hundred million dollars. 

Varun Beverages decreased 1.6% to ₹624.90, and ITC fell 1.6% to ₹469.60 on a worry that the government may increase the Goods and Services Tax on cigarettes, tobacco, and carbonated beverages. 

A committee of ministers has recommended increasing GST to 35% from 28%, reported Business Standard.