Extending gains for the eighth
session in a row, Indian equity benchmarks continued to hit fresh record
closing highs on Thursday in spite of some volatility due to weekly expiry day.
Markets made positive start and stayed in green for whole day amid firm global
market trends and continuous foreign fund inflows. Traders got 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 optimism came in 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. Sentiments
remained up-beat after a private survey
showed India's factory activity expanded at its fastest pace in three months in
November, signalling resilient demand despite deteriorating global economic
conditions as input cost inflation fell to a two-year low. The Manufacturing
Purchasing Managers' Index, compiled by S&P Global, rose to 55.7 last month
compared with 55.3 in October, marking the seventeenth successive month of
expansion in manufacturing production across India. Additional support came as
investment in the Indian capital markets through participatory notes rose to Rs
97,784 crore at the end of October, the highest in a year. This was also the
third consecutive monthly increase in investments through such a route.
However, markets trimmed some gains in late afternoon deals as some concern
came with data showing that 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.
Finally, the BSE Sensex rose 184.54 points or 0.29% to 63,284.19 and the CNX
Nifty was up by 54.15 points or 0.29% to 18,812.50.
The US markets ended mostly in
red on Thursday as investors awaited jobs data coming Friday that could
determine the pace of the Federal Reserve's future rate tightening. Street
currently expect employment to jump by 200,000 jobs in November after shooting
up by 261,000 jobs in October, while the unemployment rate is expected to hold
at 3.7 percent. The data could affect the outlook for interest rates, although
the impact may be somewhat muted following Federal Reserve Chair Jerome
Powell's remarks on Wednesday hinting at a slowdown in the pace of rate hikes
as soon as next month. Cautiousness also prevailed in the markets as activity
in the U.S. manufacturing sector contracted for the first time in over two
years in the month of November, according to a report released by the Institute
for Supply Management (ISM). The ISM said its manufacturing PMI slipped to 49.0
in November from 50.2 in October, with a reading below 50 indicating a
contraction. Street had expected the index to edge down to 49.8. With the
slightly bigger than expected decrease, the manufacturing PMI fell to its
lowest level since hitting 43.5 in May of 2020. On the sectoral front, Most of
the major sectors showed only modest moves on the day, contributing to the
lackluster performance by the broader markets. Gold stocks showed a substantial
move to the upside, however, driving the NYSE Arca Gold Bugs Index up by 3.6
percent to its best closing level in over five months. The rally by gold stocks
came amid a sharp increase by the price of the precious metal, with gold for
February delivery soaring $55.30 to $1,815.20 an ounce.
Crude oil futures ended higher on
Thursday as China moved to ease some COVID-19 curbs. Further, a weak dollar amid rising prospects
of smaller rate hikes by the Fed also contributed to the increase in oil
prices. The dollar drifted lower, extending losses from the previous session
following Fed Chair Jerome Powell's comments indicating rate hikes could slow
next month. However, Brent crude prices fell as traders awaited a weekend
meeting of OPEC+ ministers. Benchmark crude oil futures for January delivery
rose 67 cents or about 0.8 percent at $81.22 a barrel on the New York
Mercantile Exchange. However, Brent crude for February delivery lost 9 cents or
about 0.1 percent to settle at $86.88 a barrel on London's Intercontinental
Exchange.
Indian rupee ended higher against
dollar on Thursday, on persistent selling of the American currency by
exporters. Sentiments were upbeat after 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.
Besides, India's factory activity expanded at its fastest pace in three months
in November, signalling resilient demand despite deteriorating global economic
conditions as input cost inflation fell to a two-year low. The Manufacturing
Purchasing Managers' Index, compiled by S&P Global, rose to 55.7 last month
compared with 55.3 in October, marking the seventeenth successive month of
expansion in manufacturing production across India. On the global front,
sterling rose to a near 16-week high against a broadly-soft dollar on Thursday,
with currency traders looking past gloomy British manufacturing data for now.
Finally, the rupee ended at 81.22 (Provisional), stronger by 8 paise from its
previous close of 81.30 on Wednesday.
The FIIs as per Thursday's data
were net buyers in both equity and debt segment. In equity segment, the gross
buying was of Rs 39585.42 crore against gross selling of Rs 30672.77 crore,
while in the debt segment, the gross purchase was of Rs 467.30 crore against
gross selling of Rs 139.09 crore. Besides, in the hybrid segment, the gross
buying was of Rs 47.23 crore against gross selling of Rs 15.25 crore.
The US markets ended mostly in
red on Thursday as investors digested economic data following a big rally in
the previous session. Asian markets are trading mostly lower on Friday
following a near flat line close on Wall Street. Indian markets rallied for the
eighth day running on Thursday, ending at fresh record closing highs, amid firm
global market trends and continuous foreign fund inflows. Today, markets are
likely to get negative start amid weakness in global markets. Traders will be
concerned as data by the Centre for Monitoring Indian Economy (CMIE) showed
that the country's unemployment rate rose to a three-month high at 8 per cent
during November. The unemployment rate in urban India was higher at 8.96 per
cent, while in rural areas, it was at 7.55 per cent. There will be some
cautiousness as data from the central bank showed that India's services exports
and imports in October fell from the previous month. Services exports in
October stood at $25.38 billion, down from $28.03 billion in September.
Services imports in October slipped to $13.49 billion from $16.12 billion a
month earlier. Besides, foreign institutional investors (FIIs) net sold shares
worth Rs 1,565.93 crore on December 01, according to the provisional data
available on the NSE. However, some respite may come late in the day as Sanjeev
Sanyal, a member of the prime minister's economic advisory council, said the
Indian economy is likely to grow 6.5% to 7% next fiscal year if the global
environment does not worsen. Some support may come as the Finance Ministry said
Goods and Services Tax (GST) revenues rose by 11 per cent to about Rs 1.46 lakh
crore in November over the year-ago period. This is the ninth straight month
when collections from GST has remained above Rs 1.40 lakh crore. Aviation
industry stocks will be in limelight as Jet fuel (ATF) price was reduced by 2.3
per cent, reflecting softening international oil prices but petrol and diesel
rates remained on freeze for a record eighth month in running. There will be
some buzz in power stocks as government data showed that India's power
consumption logged a double-digit growth of 13.6 per cent to 112.81 billion
units in November 2022 compared to the year-ago period. Oil & gas industry
stocks will be in focus as preliminary industry data showed petrol and diesel
sales in India saw a double-digit year-on-year growth in November as increased
demand from the agriculture sector helped build on the momentum generated by
the festive season. Separately, the government has slashed to less than half
the windfall profit tax on domestically produced crude oil and also reduced the
levy on diesel. There will be some reaction in solar industry related stocks
with a private report that installation of open access solar capacity in India
increased by 91 per cent to 596 megawatt (MW) during the July-September period.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
18,812.50
|
18,764.60
|
18,874.00
|
BSE
Sensex
|
63,284.19
|
63,117.61
|
63,516.91
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
917.02
|
110.55
|
108.60
|
111.90
|
Oil & Natural Gas Corporation
|
277.27
|
140.00
|
139.20
|
141.40
|
Coal India
|
224.35
|
226.30
|
224.00
|
229.50
|
ITC
|
166.30
|
339.70
|
337.10
|
342.00
|
ICICI Bank
|
159.20
|
939.45
|
931.46
|
952.21
|
Coal India's coal production has increased by 12.8% to 60.7 million tonnes in November 2022 as against 53.8 million tonnes in November 2021.
Bajaj Auto has reported fall of 19% in total sales to 3,06,552 units in November 2022 as against 3,79,276 in the same month last year.
L&T has successfully closed a three-year $107 million sustainability-linked loan from Sumitomo Mitsui Banking Corporation on November 30, 2022.
Apollo Hospitals Enterprise has received approval to raise Rs 105 crore through issue of 7.70% - 1050 Unsecured, Redeemable, Listed, Rated NCDs face value of Rs 10 lakh each.