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Indian Shares Extend Gains; Sensex Moves Past 36k Again

The Indian stock market is notably higher Thursday morning, tracking gains in global markets amid rising optimism about a U.S.-China trade deal.

Investors are also reacting positively to the data on industrial production and inflation, and news about British Prime Minister Theresa May surviving a confidence vote last night.

The U.S. and European markets ended on a high note overnight as hopes of China and the U.S. striking a trade deal rose after Donald Trump sounded confident of such a development and even hinted at another meeting with the Chinese Prime Minister Xi Jinping if required.

The BSE benchmark Sensex is up 240.52 points, or 0.67%, at 36,019.59. The Nifty50 of the National Stock Exchange is up 65.50 points, or 0.62%, at 10,803.10.

On Wednesday, the Sensex ended up 629.06 points, or 1.79%, at 35,779.07, while the Nifty50 closed up by 188.45 points, or 1.79%, at 10,737.60.

In the forex market, the rupee opened at 71.71 against the U.S. dollar and strengthened to 71.63, gaining about 0.5%.

Bank, FMCG and realty stocks are among the most prominent gainers. Shares from capital goods and telecommunications sections are also higher, while information technology, metal, oil, automobile and power stocks are turning in a mixed performance.

Indiabulls Housing Finance is moving up 4.5%. State Bank of India, Yes Bank, HDFC Bank, Hindustan Petroleum Corporation, Grasim Industries, Bajaj Finserv, Zee Entertainment Enterprises, Tata Motors and Bharti Airtel are gaining 1.5% - 2.5%.

UPL, Hero Motocorp, GAIL India, Adani Ports, Tata Consultancy Services and Coal India are down 0.7% - 1.2%.

Sun Pharmaceutical Industries is down by about 1.6% after market regulator SEBI confirmed reports that about receiving a whistleblower complaint against the company.

Lupin bounced back after opening notably lower. The stock eased in early trades with investors reacting to an announcement from the company that a European court has upheld a decision to impose a fine of over Rs 325 crore on the company by European Commission in a litigation over blood pressure lowering drug Perindopil.

On the economic front, data released by the government after trading hours on Wednesday showed India's industrial production surged 8.1% in October, the fastest pace in eleven months, compared to 4.5% growth recorded in September 2018. The production growth for September has been retained unchanged from 4.5% increase reported provisionally.

Meanwhile, retail inflation dipped to a 17-month low of 2.33% in November (new base 2012=100), as compared to 3.38% in October. The core CPI inflation eased to 5.71% in November, compared to 6.2% a month earlier, a report from the Central Statistical Office showed.

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