Sensex and Nifty Struggle to Advance, Fadnavis and Two Deputy CMs to Lead Maharashtra

Arjun Pandit
05 Dec, 2024
Mumbai

Stock market indexes traded higher as foreign buyers returned amid improving market sentiment. 

The Sensex and the Nifty indexes edged slightly higher in early trading ahead of RBI's rate decisions on Friday. 

The Monetary Policy Committee is expected to keep interest rates unchanged for the eleventh meeting in a row, and the repo rate is expected to stay unchanged at 6.5%. 

The central bank is also likely to keep its GDP growth outlook unchanged at 7.2%, despite the unexpected sharp slowdown in the September quarter to a seven-quarter low of 5.4%. 

Foreign investors increased their exposure by 1,797.60 crore on Wednesday and domestic institutional investors sold stocks totaling 900.62 crore, according to preliminary data from stock exchanges.  

BJP leader Devendra Fadnavis will be sworn in as Chief Minister of Maharashtra on Thursday after weeks of wrangling between three-way coalition partners following the state assembly elections last month. 

In international trading, crude oil continued to drift lower ahead of the OPEC+ announcement later today, and the group of nations is expected to postpone the previously announced production increase by three months amid weak demand growth from key customers. 

Financial markets in Europe advanced for the fifth session in a row, despite the fall of the French government after three months. 

Michel Barnier's minority government of three months collapsed after the far-right party and hard-left group of lawmakers voted against the government in a no-confidence vote. 

The euro is likely to face more selling pressure after the latest political turmoil in France adds to the uncertainty in the region after Germany's three-party coalition government fell on November 6.

South Korea's KOSPI index extended two-day losses to more than 2% after President Yoon Suk Yeol abandoned martial law as the parliament voted down the decree. 

Financial markets continued to slide despite the finance ministry's pledge that the Bank of Korea is ready to pump about $7.7 billion to stabilize markets. 

 

Indexes and Yields

The Sensex index decreased by 1.0% to 79,592.61, and the Nifty index dropped by 1.0% to 24,237.80. 

On the Mumbai stock exchange, 134 stocks traded at their 52-week highs, and 10 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched lower to 6.73%, and the Indian rupee eased to 84.73 against the U.S. dollar.

The gold price increased by 0.4% to ₹77,124 per ten grams, and silver edged up by 0.4% to ₹93,344 per kilo. 

Crude oil decreased by 0.1% to ₹5,839 per barrel, and natural gas was down 0.2% to ₹258.0 per thermal unit.

 

India Stock Movers

Indus Towers Ltd. increased 1.6% to ₹364.40, and the UK-based Vodafone is looking to sell its 3% stake in the company worth 2,841 crore and use the proceeds to pay its debts in the India-based Vodafone Idea. 

Indraprastha Gas Ltd. advanced 2% to ₹367.40, and the company's board at a meeting on December 10 is expected to review the bonus issue. 

Axis Bank decreased 0.2% to ₹1,157.80, and the company's brokerage unit, Axis Securities, was fined 14.2 lakh after a dealer was alleged to front-run client orders. 

Torrent Pharmaceuticals increased 0.4% to ₹3,366.70, and the company said it plans to acquire Cospiaq and Xilingio for the treatment of type 2 diabetes from Boehringer Ingelheim GmbH. 

Torrent has been making the drug for Boehringer Ingelheim since 2022 as part of the co-marketing agreement with the company. 

PG Electroplast soared 6% to ₹817.20 after the company launched its secondary issue with a floor price of ₹705.20 per share.