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Indian shares struggle to climb amid inflationary concerns

10:53, 15 November 2021

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The BSE building in Mumbai, India
The BSE in Mumbai, India - Photo: Shutterstock

Indian shares finished flat on Monday as traders took in the downbeat inflation data. The National Stock Exchange’s (NSE) Nifty50 index ended 0.037% higher at 18,109.45 points, while the S&P BSE Sensex closed 0.053% higher at 60,718.71 points.

  • The Nifty Healthcare index, comprised of 20 stocks including Apollo Hospitals Enterprise, rose 2.13%
  • The Nifty Metal index, a basket of 15 stocks including state-run mining giant Coal India, fell 1.82%

The Indian rupee was trading 0.17% lower to the US dollar, to INR74.46 at 16:39 hours local time (UTC+5:30).

Government data for the month of October shows that wholesale price-based inflation has logged double-digit increases for seven consecutive months. Market participants worry that costly raw materials, elevated fuel prices and higher electricity tariffs could dent corporate earnings for the quarter through 31 December.

On the Nifty50

Shares of the Power Grid Corporation of India (PGCIL), government-run Oil and Natural Gas Corporation, and cigarette maker ITC were the biggest gainers adding 3.13%, 2.46%, and 2.25% respectively.

But stock in Coal India, Tata Group firm Tata Steel and Aditya Birla Group firm Hindalco Industries were the biggest losers, shedding 4.34%, 3.32% and 2.68% respectively.

On the Sensex

PGCIL, ITC, and coatings major Asian Paints were the top gainers, adding 3.46%, 2.12%, and 1.44% respectively.

US100

11,270.90 Price
+0.060% 1D Chg, %
Long position overnight fee -0.0142%
Short position overnight fee 0.0042%
Overnight fee time 21:00 (UTC)
Spread 1.5

XRP/USD

0.45 Price
-5.800% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 0.00600

BTC/USD

19,131.75 Price
-0.270% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 60.00

Natural Gas

6.85 Price
-2.810% 1D Chg, %
Long position overnight fee -0.0559%
Short position overnight fee 0.0335%
Overnight fee time 21:00 (UTC)
Spread 0.005

Tata Steel, tractor giant Mahindra & Mahindra, and two- and three-wheeler manufacturer Bajaj Auto were the top losers, shedding 3.24%, 1.19% and 0.89% respectively.

Recuperation

“The sustenance and strength of the current (economic) recovery continuing into Q4FY22 could get somewhat muted from the lagged impact of supply-side disruptions and elevated commodity prices,” according to Mumbai-based QuantEco Research.

“Further, the risk of a rise in Covid infections post the festive season imparts an element of uncertainty, as several countries are seeing a surge in cases with onset of the winter season,” QuantEco economists wrote in a 12 November report, which was shared with this news platform.

“Progress on vaccinations, with a focus to close the gap between the first and second doses (as a percentage of the population; currently at 54.5% and 25.8% respectively) will help abate economic consequences of a third-wave if any,” they added.

Read more: India’s Apollo Hospitals jumps on four-fold increase in profits

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