Nifty, Sensex Ends Flat Amid a Volatile Trading Session

MAHARASHTRA, India – Indian shares ended flat on Monday amid a volatile trading session, with most Asian markets edging higher.

The benchmark Sensex index opened Monday trading on a higher note, also recording a more optimistic end for most in the Asian stock market.

At the end of the trading day, Sensex secured a modest increase of eight points, boosting it towards its current 40,802 points. Nifty, on the other hand, came short with a 0.07% decline towards 40,802 points. Among the top gainers in the Indian stock market is Bharti Airtel, which recorded a 4% surge for the day and the RIL with its 2.3% rise.

On the other hand, Yes Bank stocks ended lower, recording a 6% decline following the statement on Friday that investors have shown interest to boost around $2 billion towards the private sector lender. The board of the bank is set to reconvene on December 10 for the approval of details and finalization of the capital infusion.

The RBL Bank stocks, however, ended with a 0.8% gain despite its news on Saturday about approving the increase in crore worth equity capital to five of its investors.

The seemingly unmoving stock market in India followed the country’s GDP report published on Friday, showing that the economy in India has grown at a 26-quarter low of 4.5 percent in three months towards September 30. Although, according to the head of research at Yes Securities, Amar Ambani, the mild negative data in the near term will not affect or change the medium-term trajectory when it comes to equities.

Ambani also added that after the RBI’s 135 basis rate cut since February this year, RBI is expected to impose another rate cuts in December of around 25bps, which will move the repo rate towards 4.90%. The market is waiting for the RBI’s decision on the rate cut, which is expected on December 5.

Overall, the Asian markets have edged higher on Monday as market players cheered on the more upbeat factory activity on China based on the reports published in the country.

Japanese shares led the gains in Asia as the yen went down by about 0.1% towards 109.63 Japanese yen per dollar. The 10-year yield of Japan also increased three basis points to -0.045%. The onshore yuan also experienced a moderate dip at 0.1% towards 7.042 per dollar value. Hong Kong also ended Monday more positively as shares in the city climb higher despite the clashes between the police and pro-democracy protesters resumed over the weekend.