India’s stock benchmarks snap losing run ahead of RBI rate decision
- Nifty rose 0.18% and Sensex added 0.19%
India’s equity benchmarks inched higher on Thursday, snapping a four-session losing streak, led by information technology stocks as the rupee weakened ahead of the central bank’s rate decision.
The Nifty rose 0.18% to 26,033.75, and the Sensex added 0.19% to 85,265.32.
Both Nifty and Sense lost 0.9% and 0.7%, respectively over the past four sessions after hitting record highs last week.
“Markets lack direction and the need of the hour will be effective communication by the regulator,” said Hitesh Suvarna, analyst at JM Financial.
The RBI decision is due on Friday, with strong economic growth and a weakening currency raising questions about the need for a rate cut amid prevailing U.S-India trade deal uncertainty.
Indian shares extend losses on trade deal jitters, rupee at record low
A Reuters poll conducted before the growth data projected a 25-basis-points reduction.
“The RBI has a tough task at hand focusing on its dual mandate of supporting growth while maintaining price stability,” Suvarna said.
Foreign portfolio investors have sold $933 million worth of Indian shares so far this week, more than twice the $425 million in outflows in November.
Nine of the 16 major sectors logged gains on the day. The IT index rose 1.4% after a 0.8% gain in the previous session, supported by rupee weakness and expectations of a U.S. rate cut next week. A weaker rupee lifts IT firms’ dollar earnings when converted into local currency.
High-weight financials fell 0.1%, dragged by a 0.3% drop in private lenders HDFC Bank and ICICI Bank.
Small-caps fell 0.2% and mid-caps closed flat.
Petronet LNG gained 4.5% after signing a 15-year binding term sheet with ONGC for ethane unloading, storage and handling services.
Biocon fell 5.3% after announcing plans to raise its stake in its biosimilars unit, a move analysts said could lead to “meaningful” shareholder dilution.
IndiGo slipped 2.4%, extending losses for a fifth straight session amid rising flight cancellations.
Comments
Comments are closed for this article.