A significant development was seen in Chinese stocks which rose for the first time in five days; however, Indian stocks were lower today as power utility and energy shares declined. The major reason behind the upward movement of Chinese stocks was that energy and consumer companies gaining after the benchmark index reached the cheapest levels on record.
On the other hand, most Indian (SENSEX) stocks dropped. Earlier global equities declined after the Standard & Poor’s 500 Index posted its biggest loss in two months. However, this did not seem to have much effect on Chinese stocks wherein China Petroleum & Chemical Corp., the refiner also known as Sinopec, gained 2.5 percent.
Major Losers and Gainers in the Chinese Stock Market
Following the upward trend, FAW Car Co. also jumped 5.1 percent. A major reason behind the growth in FAW Car Co. is that Xinhua News Agency cited the People’s Liberation Army as saying the military must buy domestic-brand vehicles. The measure is expected to give a boost to the vehicle manufacturer which has been facing a lot of challenges thanks to a drop in sells.
Though FAW Car Co. was up, Great Wall Motor Co., the nation’s biggest maker of sport utility vehicles, was not fortunate enough and fell after it delayed the introduction of a model. On the complex trading day, the Shanghai Composite Index rose 0.9 percent to 2,026.84 at the close. Thus, rebounding from its lowest level since July 31, it looks for a better ending this week.
Indian Stocks Decline as Utility and Energy Companies Unable to Click
In today’s trading, most Indian (SENSEX) stocks dropped. The major loser in today’s trade was Tata Motors Ltd. (TTMT), owner of Jaguar Land Rover. Its stocks fell the most in more than a week. A similar pattern was seen in Oil & Natural Gas Corp. (ONGC) which saw a decline of 1.6 percent. Another power company, NTPC Ltd. slid to a one-week low.
Tata Motors declined 1.3 percent, the most since January
IT sector too fared worse as Tata Consultancy Services Ltd. (TCS) slid. Market observers believe that the fall is attributed to the fact that U.S. stocks slid yesterday as investors weighed valuations and the outlook for the Federal Reserve’s stimulus and the same has its impact on the Indian stocks. On the dismal trading day today, the MSCI Asia Pacific Index lost 1.2 percent.
To contact the reporter of this story: Jonathan Millet at email@example.com