6:00 PM Mumbai, India – The wholesale price index in November decreased 1.99% compared to the decline of 3.81% in October. Japan offered military, commercial and technology assistance to advance logistics and infrastructure development to India.
Stocks in Mumbai halted two week long decline and the latest read on wholesale price showed gathering momentum.
Stocks were under pressure after the deepening malaise in crude oil and widening correction in base metals, coal and iron ore prices overshadowed stocks across Asia.
Oil touched a new seven-year high and iron ore decline in the year so far to more than 45% in international trading.
Crude oil in New York traded as low $35.52 a barrel and in London declined to $37. 45 on the rising supply worries in the U.S. and falling demand from China.
The wholesale price index in November declined 1.99% compared to 3.81% fall in October and 0.17% decrease in the same period a year ago, the Ministry of Commerce & Industry reported.
The wholesale prices fell for the 13th month in a low since November 2013.
The public sectors banks gained after the Reserve Bank of India plans to discuss bad loan rules with 20 public sectors bank chiefs later today, TV18 reported.
Bank of Baroda advanced 1.5%, Andhra Bank gained 1.3%, Bank of India rose 1.3%, IDBI Bank increased 1.2%, Punjab National Bank increased 1.1%, Oriental Bank of Commerce rose 0.8% and Indian Overseas Bank edged up 0.5%.
Sugar producers gained after the central government plans to increase the cess on sugar by almost ₹100 per quintal to fund its program of paying ₹4.50 per quintal directly to growers.
Bajaj Hindusthan Sugar Ltd advanced 2%, Shree Renuka Sugars Ltd gained 2.5%, Balrampur Chini Mills Ltd jumped 4% and Dhampur Sugar Mills Ltd increased 2%.
India and Japan signed a preliminary pact on civil nuclear cooperation after years of negotiations at the ninth annual summit between the two countries.
The two countries agreed on sharing technology, equipment and military information.
Japan will participate in large infrastructure projects in India, including the $5.5 billion Chennai-Bengaluru corridor project. Japan will provide $12 billion for constructing India’s first bullet train, as well as an incentive of $12 billion for Japanese companies investing in India.
India is looking to build its first bullet train between Mumbai and Amdavad and cut the travel time from seven hours to 2 hours for the distance of 508 km. The rail line is expected to cost ₹97,000 crore.
Rupee weakened 21 paisa to ₹67.09 against one U.S. dollar and descended to record low touched in 2013.
The Sensex Index edged up 105.92 or 0.4% to close at 25,150.35. The CNX Nifty increased 39.60 or 0.5% to 7,650.05.
Gainers & Losers
Artson Engineering Limited
advanced 2.6% to ₹47.80 after the infrastructure developer secured an order worth ₹14.87 crore.
Hotel Leelaventure Limited
advanced 2.5% to ₹20.25 after the resort operator received an approval from the Competition Commission of India to sell Goa resort to Malaysia-based Met Tube for about ₹725 crore.
IL&FS Engineering and Construction Company Limited
soared 13.2% to ₹67.60 after the infrastructure developer secured metro rail contract worth ₹374.64 crore in Gujarat.