Indian Shares Give Up Early Gains To End Marginally Lower

(RTTNews) - Indian shares gave up early gains to end slightly lower on Monday. Markets opened on a positive note after data showed the Indian economy grew at the fastest pace in six quarters during the three months to September, defying expectations for a modest slowdown.

GDP grew 8.2 percent year-on-year following a 7.8 percent expansion in the June quarter, according to preliminary data from the statistics ministry. Economists had forecast a slower growth of 7.3 percent. In same quarter of the previous year, growth was 5.6 percent.

The latest pace of growth was the strongest since the March quarter of 2024, when the economy grew 8.4 percent.

Early gains faded as the rupee hit a new record low on foreign outflows and uncertainty around key trade negotiations with the United States.

Higher oil prices also weighed on investor sentiment. Oil prices were up nearly 2 percent in European trade following Russian attacks on Ukraine's energy infrastructure and an escalation in tensions between the United States and Venezuela.

The benchmark BSE Sensex swung between gains and losses before closing down 64.77 points, or 0.08 percent, at 85,641.90.

The broader NSE Nifty dropped 27.20 points, or 0.10 percent, to 26,175.75. The BSE mid-cap index slipped 0.2 percent while the small-cap index finished marginally higher.

The market breadth was weak on the BSE, with 2,399 shares declining while 1,846 shares rose and 210 shares closed unchanged.

Among the prominent decliners, Bajaj Finance fell 1.7 percent, Sun Pharma lost 1.3 percent and Trent gave up 0.8 percent.

Tata Motors Passenger Vehicles (TMPV) rose nearly 2 percent after reporting higher year-on-year November sales.

Similarly, peer Maruti Suzuki India added 1.4 percent after November auto sales beat estimates.

Globally, Asian markets ended mixed as China's factory activity data disappointed and Bank of Japan Governor Kazuo Ueda gave one of his clearest indications that his board might increase interest rates soon.

European stocks were subdued in early trade after closing November on a robust note amid optimism surrounding potential U.S. rate cuts.

Gold held near a six-week high as the dollar weakened on Fed rate cut expectations and amid speculation over the appointment of the next Federal Reserve Chair.

Oil prices climbed as geopolitical tensions escalated and OPEC+ confirmed it will stick with plans to pause production hikes during the first quarter.