India Stocks Fluctuate as Oil, Polls Offset Trade Truce Cheer
(Bloomberg) -- Indian stocks were volatile on Monday as as the biggest surge in oil prices in two years and uncertainty around the outcome of state elections offset cheer from a U.S.-China trade truce.
The S&P BSE Sensex rose 0.1 percent to 36,241 in Mumbai, paring an earlier gain of 0.7 percent. The NSE Nifty 50 Index climbed 0.1 percent. While U.S. and China leaders agreed to pause the introduction of new tariffs and intensify trade talks, the price of crude oil -- India's biggest import -- rallied as much as 6.6 percent.
The Numbers
- Fifteen of the 19 sector sub-gauges compiled by BSE Ltd. advanced, led by the S&P BSE Utilities Index's 2.7 percent gain.
- Hindustan Unilever Ltd. and NTPC Ltd. provided the biggest boosts to the benchmark.
- Unilever agreed to acquire GlaxoSmithKline Plc's Indian consumer business, including malted milk drink Horlicks, for 3.3 billion euros ($3.8 billion).
- Sun Pharmaceutical Industries Ltd. declined the most in 18 months on a report that the market regulator may reopen an insider trading case against it. The company denied being contacted by the regulator on any whistle-blower complaint in an emailed response.
- InterGlobe Aviation Ltd., Hindustan Petroleum Corp., Bharat Petroleum Corp., Indian Oil Corp. fell on higher oil prices.
- “There is some caution around both oil and election results,” said Jitendra Panda, managing director at Peerless Securities Ltd. The “sharp rise in crude oil prices also weighs on the local currency. The market was at a high, which provided some investors opportunity to exit and sit on cash until the events are over.”
- Votes in all the Indian state elections will be counted on Dec. 11.
Analyst Notes/Market-related stories
- PVR Jumps on Hyderabad Multiplex, 2.0 Movie Release: Maybank
- Most Profitable Graphite Maker Sees More Gain on China Skies (1)
To contact the reporter on this story: Nupur Acharya in Mumbai at nacharya7@bloomberg.net
To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Margo Towie, Teo Chian Wei
©2018 Bloomberg L.P.
Strategist View
-
High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
The suspension of PERM processing at eight technology employers does not cancel existing H-1B visas. What it does is force a question many Indian families have been avoiding: is the US salary worth tying your career and family plans to one employer?
-
Swiggy vs Eternal: Food Delivery's Two Rivals Are No Longer In The Same Race
Eternal is building a private AI assistant, dark.ai. Swiggy is still working out how to make Instamart pay, with an operating loss of Rs 895 crore in the July-September quarter while Blinkit stayed profitable.
-
Where You Live Shapes How You Get To Work | The Reason Why
Two-wheelers are the most popular way to get to work in India, accounting for nearly 43% of workplace commutes.
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
-
You May Inherit The Business. You Must Earn Its Credibility.
Succession tests the founder's ability to share authority as much as it tests the next generation's readiness to assume it.
-
Signing Deals Is One Thing; Making Them Work Is Another | The Week In Whys
Sometimes, things don't turn out as planned. Indian companies have lost some bids to rivals, some projects won't produce until 2030.
-
FOMC Wall, PERM Suspension, Hospital Stocks | Talking Points This Week
A PERM suspension would directly affect green-card sponsorship rather than H-1B visas, so the near-term earnings impact could remain relatively limited. The key question is whether this marks a new phase in US scrutiny of Indian IT.
