Indian shares rebound ahead of central bank rate decision
10:42, 7 December 2021
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.
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