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Indian shares rebound ahead of central bank rate decision

By Munikoti Rochan

10:42, 7 December 2021

A stock market chart
A stock market chart – Photo: Shutterstock

Indian shares bounced back to finish higher on Tuesday, boosted by expectations that the country’s central bank, the Reserve Bank of India (RBI), will maintain its record-low lending rate amid an Omicron virus threat to business activity.

Benchmark equity indices in Mumbai advanced 1.56% each through the day. The National Stock Exchange’s (NSE) Nifty50 closed at 17,176.70 points and the S&P BSE Sensex ended at 57,633.65 points.

  • Metal and mining companies surged on 7 December, with the Nifty Metal index, comprised of 15 stocks including state-run Hindustan Copper, soaring 3.13%
  • Banks gained, with the Nifty Private Bank, the Nifty Public Sector Undertakings (PSU) Bank and the Nifty Bank indices rising 2.48%, 2.47% and 2.32% respectively

The Indian rupee was trading 0.045% lower against the US dollar at INR75.42 as of 15:55 hours local time (UTC+5:30).

On the Nifty50

Shares in Aditya Birla Group firm Hindalco Industries, Tata Group firm Tata Steel and private sector lender Axis Bank were the biggest gainers, adding 5.15%, 3.97% and 3.59% respectively.

Bakery products major Britannia Industries, pharmaceutical firm Cipla and rival Divi’s Laboratories were the biggest losers, shedding 0.58%, 0.56% and 0.36% respectively.

On the Sensex

Tata Steel, Axis Bank and rival ICICI Bank were the top gainers, adding 3.63%, 3.6% and 3.46% respectively.


147.64 Price
+0.360% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.18


0.71 Price
-0.640% 1D Chg, %
Long position overnight fee -0.0253%
Short position overnight fee 0.0033%
Overnight fee time 22:00 (UTC)
Spread 0.0025


482.00 Price
+0.870% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.32


249.99 Price
+0.900% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.13

Coatings giant Asian Paints was the sole loser among the 30 counters on the index, shedding 0.22%.

RBI status quo

The Reserve Bank of India (RBI) is expected to leave interest rates unchanged at its final rate-setting meeting of the year on 8 December.

Five economists polled said the central bank’s monetary policy committee (MPC) would leave the benchmark repurchase rate at a record low of 4%. But a hike is imminent early next year, they told this news platform.

The Indian economy, Asia’s third largest, expanded by 8.4% year-on-year in the quarter through September 2021, compared to a contraction of 7.4% in the corresponding period of the preceding year, per government data.

Read more: Indian steel company profits hit by higher costs: ICRA

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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