The Indian stock market snapped a four-day winning streak as investors felt a rally in auto stocks was overdone. Also, prospects of crude oil prices going higher led to a slide in select oil related stocks.
India’s GDP grew lower than expected in the September quarter at 7.3%, as compared to 7.6% in the same quarter last year.
Nifty closed 33 points lower at 8192.90, while BSE Sensex ended with a loss of 93 points at 26559.92.
The Nikkei/ Market Manufacturing Purchasing Managers’ Index fell to 52.3 in November from October’s 54.4, its biggest month-on-month decline since March 2013.
European stock markets were trading slightly in red as investors focused on political developments in Italy and key data releases after the oil-producing cartel OPEC agreed to cut production.
On the global front, most Asian indices closed in green and marginally up. In Europe, the FTSE 100 was down 0.50%. CAC 40 and DAX was down 0.42% and 0.43% respectively, where all indices were trading in red while, the US Nasdaq was also down 1.06%.
Maruti Suzuki’s share price opened the trading day down 0.7% on the BSE.
According to an article in The Financial Express, automobile dealers around the country have reported seeing a sharp fall in sales after Prime Minister Narendra Modi’s surprise move to ban 500 and 1,000 rupee denominated notes last month, which accounted for 86% of currency in circulation.
Sales of two-wheelers are likely to be impacted the most since around 40% of transactions are financed by cash.
The move has sparked concern, it will dent growth in India’s consumer demand-reliant economy at a time when gross domestic product had expanded at an annual 7.3% between July and September, the fastest rate for a large economy.
Moving on to news from stocks in pharma sector. According to a leading financial daily, Lupin and Eli Lilly and Company (India) (Lilly) have expanded their partnership in India with the launch of Eglucent. Eglucent is a new brand of Lilly’s rapid-acting insulin analog Lispro.
According to the agreement, Lupin will market and sell Eglucent through its own specialty field force, while Lilly will be responsible for manufacturing and import. Lilly will continue to sell Lispro under the brand name Humalog through its existing channels. Lupin had earlier collaborated with Lilly (July, 2011) to promote and distribute Lilly’s Huminsulin range of products in India and Nepal.
Gold was trading at Rs 28,120 per 10 gms and silver was trading at Rs 39,790 per kg.
The Indian rupee was trading at 68.35 per US dollar.
Out of 1511 stocks traded on the NSE, 975 declined and 496 advanced today.
Top 5 Nifty Gainers: Coal India (1.16%), ONGC (0.56%), Reliance Ind. (0.43%) and Sun Pharma (0.04%).
Top 5 Nifty Losers: Dr Reddys Lab (-2.32%), HDFC (-2.19%), ITC Ltd. (-2.06%), L&T (-1.48%) and Adani Ports & Sez (-1.38%).
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