Indian stocks close higher on strong economic data

People stand outside the Bombay Stock Exchange (BSE), after Sensex first crossed the 60,000 level, in Mumbai, India on September 24, 2021. REUTERS / Francis Mascarenhas / File Photo

BENGALURU, Dec. 1 (Reuters) – Indian stocks closed higher on Wednesday as a series of strong data highlighting the economic recovery after the COVID-19 pandemic lifted stocks of metals, auto companies and banking.

The blue chip NSE Nifty 50 (.NSEI) rose 1.08% to 17,166.90 and the benchmark S&P BSE Sensex (.BSESN) climbed 1.09% to 57,684.79 .

India’s gross domestic product grew 8.4% in the July-September quarter – faster than any major economy in the period – but fears have grown that the coronavirus variant Omicron could slow the momentum. Read more

A separate report also showed that 1.32 trillion rupees was collected last month in gross tax on goods and services – a 25% jump from the previous year and the second highest since the introduction of the tax in 2017.

The market was also bolstered by a private survey that found India’s manufacturing activity in November grew at the fastest pace in 10 months. Read more

The Nifty Auto Index (.NIFTYAUTO) ended up 1.46%, led by Tata Motors (TAMO.NS), which peaked nearly a month after its domestic passenger vehicle sales in November rose 38%.

Maruti Suzuki India (MRTI.NS) gained 2.9% after reporting a sequential improvement in its monthly sales, and said on Tuesday that production at two of its manufacturing units would be around 80% to 85% of normal capacity in December – well above the production figures for September and October. Read more

Metals and banking stocks (.NIFTYMET), (.NSEBANK) rose the most among the main Nifty sub-indices, gaining 2.3% and 1.88% respectively.

Among individual stocks, Tata Power (TTPW.NS) rose 3.87% after its unit bagged a solar and battery storage project worth 9.45 billion rupees.

Shares of fertilizer companies, including Rashtriya Chemicals and Fertilizers Ltd (RSTC.NS) and Chambal Fertilizers & Chemicals Ltd (CHMB.NS), jumped 5% to 9% after a Reuters report that the government plans to double the subsidies. Read more

Report by Vishwadha Chander in Bangalore; Editing by Subhranshu Sahu and Aditya Soni

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