Extending their winning streak to
a seventh consecutive session, Indian equity benchmarks ended at fresh record
closing highs with gains of over half percent each on Wednesday. Markets made
slightly positive start and managed to keep heads in green terrain in the first
half as investors reluctant to make any significant move ahead of the Q2 gross
domestic product (GDP) numbers to be out later in the day. There are
expectations that annual growth in the Indian economy likely slowed in the
July-September quarter as COVID distortions faded. As per a private report, the
economy is likely to post annual growth of 6.2% in the three months to
September 30, down from explosive growth of 13.5% in the previous quarter,
which was inflated by comparison with weak activity during COVID-19 lockdowns.
However, key gauges picked up momentum in the last hour with Sensex crossing
63,000 and Nifty 18,750 for the first time. Traders found solace amid a private
report stating that global investors are bullish on Indian equities market in
spite of the 86 per cent premium it commands over emerging market peers and on
the back of a 17 per cent outperformance so far this year. Some support also
came as provisional data available on the NSE showed foreign institutional
investors (FIIs) have net-bought shares worth Rs 1,241.57 crore on November 29,
2022. Besides, Finance Minister Nirmala Sitharaman said the Union government
has saved Rs 2,00,000 crore by using technology as systems like Direct Benefit
Transfer (DBT) stopped leakages. Finally, the BSE Sensex rose 417.81 points or
0.67% to 63,099.65 and the CNX Nifty was up by 140.30 points or 0.75% to
18,758.35.
The US markets ended sharply
higher on Wednesday as remarks by Federal Reserve Chair Jerome Powell provided
further evidence the central bank plans to slow its aggressive pace of interest
rate hikes as soon as next month. Powell noted that the full effects of the
Fed's rapid rate increases have yet to be felt. However, the Fed chief argued
the timing of a slowdown in the pace of rate hikes is less significant than how
much further the central bank will need to raise rates and how long it will be
necessary to hold policy at a restrictive level. While the central bank seems
likely to slow the pace of rate hikes, Powell suggested rates would likely need
to be somewhat higher than predicted by Fed officials following the September
meeting. At that time, Fed officials forecast interest rates would peak at 4.6
percent in 2023 before being scaled back to 3.9 percent in 2024. On the
sectoral front, semiconductor stocks moved sharply higher over the course of
the session, resulting in a 5.9 percent spike by the Philadelphia Semiconductor
Index. The surge lifted the index to a three-month closing high. Substantial
strength also emerged among networking stocks, with the NYSE Arca Networking
Index soaring by 3.7 percent to its best closing level in almost a month. On
the economic data front, pending home sales in the U.S. decreased for the fifth
consecutive month in October, according to a report released by the National
Association of Realtors (NAR). NAR said its pending home sales index tumbled by
4.6 percent to 77.1 in October after plunging by 8.7 percent to a revised
reading of 80.8 in September. Street had expected pending home sales to slump
by 5.2 percent compared to the 10.2 percent nosedive originally reported for
the previous month.
Crude oil futures ended sharply
higher on Wednesday after data showed a steep fall in crude inventories in the
U.S. in the week ended November 25, 2022. Data released by U.S. Energy
Information Administration (EIA) showed crude inventories in the U.S. dropped
by nearly 13 million barrels last week, the biggest weekly decline since the
week ended June 21, 2019. The EIA data also showed that gasoline stockpiles
increased by 2.77 million barrels last week, while distillates stockpiles rose
by 3.55 million barrels. Further, expectations of increased demand from China
and a weaker dollar also contributed to the jump in oil prices. Benchmark crude
oil futures for January delivery rose $2.35 or about 3 percent at $80.55 a
barrel on the New York Mercantile Exchange. Brent crude for January delivery
gained $2.75 or about 3.25 percent to settle at $87.00 (Provisional) a barrel
on London's Intercontinental Exchange.
Indian rupee strengthened against
the dollar on Wednesday as persistent foreign capital inflows and fall in crude
oil prices strengthened investor sentiment. Traders got some encouragement, as
Reserve Bank of India (RBI) is all set to launch the first pilot for retail
digital Rupee on December 01, 2022. The
pilot would cover select locations in closed user group (CUG) comprising
participating customers and merchants. The retail digital Rupee would be in the
form of a digital token that represents legal tender. On the global front,
dollar eased from a one-week high on Wednesday ahead of a speech by Federal
Reserve Chair Jerome Powell, while optimism over a possible loosening in
China's COVID restrictions set it on course for its biggest monthly loss since
late 2010. Finally, the rupee ended at 81.38 (Provisional), stronger by 34
paise from its previous close of 81.72 on Tuesday.
The FIIs as per Wednesday's data
were net buyers in both equity and debt segment. In equity segment, the gross
buying was of Rs 6605.43 crore against gross selling of Rs 5326.11 crore, while
in the debt segment, the gross purchase was of Rs 381.59 crore against gross
selling of Rs 319.64 crore. Besides, in the hybrid segment, the gross buying
was of Rs 9.24 crore against gross selling of Rs 12.72 crore.
The US markets ended higher on
Wednesday amid Federal Reserve Chairman, Jerome Powell's dovish stance in his
speech. The Fed chair signaled that the US Central Bank would reduce the
aggressive pace of rate highs. Asian markets are trading mostly in green on
Thursday as China reopening hopes and broad weakness in the dollar in the wake
of Fed Chair Jerome Powell's dovish remarks in a speech helped improve risk
sentiment. Indian markets rose notably on Wednesday to extend gains for a
seventh straight session and reach fresh record highs on the back of firm
global cues. Today, start of new month likely to be optimistic tracking firm
global cues. Investors will be eyeing the manufacturing PMI data for November
to be out later in the day. Traders will be taking encouragement as the
government data showed that retail inflation for industrial workers rose to
6.08 per cent in October from 6.49 per cent in September 2022 mainly due to
lower prices of certain food items. Some support will come as Chief Economic
Advsior V Anantha Nageswaran said the Indian economy is on track to achieve a
6.8-7 per cent GDP growth in the current fiscal. He said the economic recovery
momentum is continuing and the GDP is averaging the 2019-20 level. Foreign fund
inflows likely to aid domestic sentiments. Foreign institutional investors
(FIIs) net bought shares worth Rs 9,010.41 crore on 30 November, according to
the provisional data available on the NSE. Besides, India's Finance Minister
Nirmala Sitharaman expects strong growth and lower inflation next year, as
central bank authorities seek to stabilize Asia's third-largest economy amid
tough global headwinds. However, there may be some cautiousness as the
government data showed that India's economic growth slowed to 6.3 per cent in
the September quarter of 2022-23 compared to 13.5 per cent in the preceding
three months mainly on account of contraction in output of manufacturing and
mining sectors. Also, traders may be concerned as growth in production by eight
infrastructure industries, which comprise the core sector, slowed down sharply
to a 20-month low of 0.1 per cent in October, owing to a high base effect and
weak activity. Meanwhile, the Centre's fiscal deficit touched 45.6 per cent of
the Budget target in the first seven months of the current financial year,
higher than 36.3 per cent in the corresponding period of the last year. Auto
stocks will be in focus reacting to their monthly sales numbers.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
18,758.35
|
18,644.59
|
18,844.09
|
BSE
Sensex
|
63,099.65
|
62,731.01
|
63,385.64
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
611.42
|
107.55
|
106.31
|
108.36
|
ITC
|
225.56
|
340.30
|
338.15
|
343.30
|
ICICI Bank
|
208.58
|
952.50
|
942.94
|
960.14
|
Oil & Natural Gas Corporation
|
177.20
|
140.95
|
139.76
|
141.96
|
State Bank of India
|
156.06
|
602.95
|
597.10
|
610.10
|
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