Indian stock markets rise on hopes of broad-based recovery
11:49, 9 December 2021
Indian shares gained a third straight session to finish higher on Thursday as concerns about the Omicron virus threat eased after the central bank’s comment on a broad-based recovery in activity.
Benchmark indices advanced 0.27% each through the day. While the National Stock Exchange’s (NSE) Nifty50 ended at 17,516.85 points, the S&P BSE Sensex closed at 58,807.13 points.
“The recovery in domestic economic activity is turning increasingly broad-based, with the expanding vaccination coverage, a slump in fresh Covid-19 cases and rapid normalisation of mobility,” the nation’s central bank noted on Wednesday.
“Rural demand is expected to remain resilient. The spurt in contact-intensive activities and pent-up demand will continue to bolster urban demand,” added the Reserve Bank of India.
- Media companies were the top performers with the Nifty Media index, comprised of 10 stocks including Network18 Media & Investments, jumping 3.57%
- The Nifty Fast Moving Consumer Goods (FMCG) index, a basket of 15 stocks including Godrej Consumer Products, climbed 1.44%
The Indian rupee was trading 0.59% lower to the US dollar, to INR75.82 at 17:00 hours local time (UTC+5:30).
On the Nifty50
Shares of cigarette maker ITC, engineering-to-software conglomerate Larsen & Toubro (LT) and coatings major Asian Paints were the top gainers, adding 4.91%, 3.01% and 2.20% respectively.
The country’s largest private sector lender HDFC Bank, watches and jewellery retailer Titan Company (TITAN) and food products major Nestle India were the top losers, shedding 1.79%, 1.35% and 1.12% respectively.
On the Sensex
Stock in ITC, LT and Asian Paints were the biggest gainers, adding 4.6%, 3.06% and 2.23% respectively.
HDFC Bank, TITAN and Nestle India were the biggest losers, shedding 1.67%, 1.32% and 0.99% respectively.
HCL Technologies finished 0.31% lower at INR1,168 after the company said it will partner with Germany’s largest co-operative lender apoBank to buy a German IT consulting firm. The software exporter has a market capitalisation of around INR3.17trn ($41.8bn) on the NSE, where its shares have gained some 23% so far this year.
The Reserve Bank of India’s (RBI) monetary policy committee (MPC) “voted to keep policy rates on hold (on 8 December), opting only to introduce further small measures to withdraw liquidity from the banking sector,” said Darren Aw, Asia economist at London-based research firm Capital Economics.
“With the RBI still focusing primarily on supporting the fragile economic recovery, we continue to think that policy rates will be left on hold for a few more months yet,” he wrote in an 8 December note to clients.
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