The Indian stock market showed positive performance on Monday, December 17, extending gains from the previous week. Market players are still upbeat about the outcome of regional elections and the appointment of a new chairman of the central bank. In sector terms, financial names enjoyed the strongest demand. As regards the regulator’s meeting, held on Friday and headed by a new chairman Shaktikanta Das, a key issue on the agenda was a change in the management structure of the central bank, and it was decided that this issue requires further consideration. Notably, the country’s trade deficit narrowed to USD 16.67 bn in November on the back of falling gold imports. The news flow was mixed, as Asian benchmarks trended predominantly higher, while European indices have been trading in the red. Recapping the benchmarks, the Nifty 50 advanced 0.77% to 10,888.35, while the BSE Sensex closed 0.85% higher at 36,270.07. By 10:29 GMT, the USD/INR traded down 0.51% to 71.605, while EUR/INR dropped 0.24% to 81.1665. The 10-year government bond yield widened to 7.456%. As noted above, financial names stood out among the session’s best performers. Housing Development Finance Corporation and HDFC Bank added 3.0% and 1.7%, respectively. In addition, automaker Tata Motors was well bid and surged 4.2%. Meanwhile, mining company Vedanta rose 1.9% after the court directed the state pollution regulator to pass a fresh order of renewal of consent for Vedanta’s copper smelter. The daily chart shows that the BSE Sensex has traded near the upper line of Bollinger Bands and the resistance level at 36,466. At the same time, the Slow Stochastic Oscillator is set to enter overbought territory. As a result, the benchmark holds downside potential in the short term. $SENSEX, S&P BSE SENSEX INDEX / D