India’s gold imports drop in November
High gold prices and a weak economic scenario are impacting demand for gold in India, the world’s second-largest consumer (after China). As per reports, India’s gold imports fell 41% YoY in November to about 33 tonnes (about ₹16,000 crore). Even the festival of Diwali didn’t help in boosting the demand for the yellow metal. Gold prices fell by about 5.7% in November, even as the US dollar index dropped 2.3%. This is contrary to the general trend in gold prices, which move inversely to the US dollar index.
IRCTC soars with high volumes
In India, the first vaccine doses will be available in a matter of weeks and the vaccination programme will begin after experts give a go-ahead. The optimism over the vaccine and passage of time since the first lockdown seems to be making people now adjusted to the situation and comfortable with travelling again. The effects of the improving sentiments were seen in the price of shares of IRCTC, which was up as 6.8% today and closed at ₹1,678. Today’s gains follow a 13.9% rise on last Friday. The sharp rise in the price of the state-run company comes after a nearly seven-month-long consolidation within the range of ₹1,300–1,400. Meanwhile, other travel industry-related stocks that saw gains today include Spicejet (+6.8%), Indian Hotels (+3.5%), EIH (+3.7%), Chalet Hotels (+12.3%), Lemon Tree (+14.3%).
ONGC’s overseas arm strikes oil
ONGC Videsh Ltd (OVL), the overseas arm of state-run oil exploration company ONGC, has struck oil at its onshore block in Colombia. OVL, which is wholly owned by ONGC, has a 70% stake in the block. While the exact value of the find has not been announced, it is said to be a large onshore block that offers several exploratory opportunities. The company now plans to drill more wells to explore the other opportunities in the block soon. The stock rose by over 4.5% intraday and closed 3% higher for the day. It has risen 21% in November and is up over 16% in December. The rise in share prices is backed by higher-than-average volumes, indicating strong investor interest. In 2020, ONGC has been one of the laggard stocks, having dropped 29% versus a 10% rise in the Nifty50. It seems to be catching up with the broader market trend now.