Snapping a three-day losing
streak, Indian benchmark indices ended Tuesday's session with gains of around
half percent, led by gains in Metal, IT and TECK stocks. Markets made a cautious start, as traders
were worried after rating agencies Crisil and Icra revised down their India
growth projections for the current fiscal and the second quarter mainly due to
the ripple effect of slowdown in global growth and mixed crop output. Crisil
downgraded the India growth forecast by 30 bps to 7 per cent while Icra pegged
the economic expansion at 6.5 per cent for the second quarter of FY2022-23.
However, indices quickly moved to green and remained in that zone throughout
the session as India and the European Union (EU) signed an agreement on
cooperation in areas such as climate modelling and quantum technologies,
building on the Trade and Technology Council launched by the two sides earlier
this year. Sentiments remained positive as the Centre said the number of
beneficiaries under the PM-KISAN scheme has crossed 10 crore, increasing more
than three-fold from 3.16 crore farmers covered under the first instalment
period in early 2019. Traders took a note of report that DEA Secretary Ajay
Seth has exhorted multilateral development banks (MDBs) to explore more private
sector investment opportunities to facilitate further crowding-in of private
financial resources. He highlighted huge opportunities to scale-up investments
in India's key priority areas, including green energy and urban infrastructure.
Meanwhile, Finance Minister Nirmala Sitharaman will hold pre-budget
consultations with her state counterparts on Friday. Finally, the BSE Sensex
rose 274.12 points or 0.45% to 61,418.96 and the CNX Nifty was up by 84.25
points or 0.46% to 18,244.20.
The US markets ended higher with
gains of over one percent on Tuesday on upbeat earnings, optimism about slower
rate hikes. Shares of Best Buy soared by 12.8 percent after the company
reported better than expected third quarter results and raised its full-year
guidance. Apparel retailer Abercrombie & Fitch (ANF) also spiked after
reporting an unexpected third quarter profit on sales that beat street
estimates. Abercrombie & Fitch CEO Fran Horowitz also said the company is
cautiously optimistic about the holiday shopping season. Further, markets also
benefitted from ongoing optimism about the Federal Reserve slowing the pace of
interest rate hikes, which persisted despite hawkish comments from some Fed
officials. The Fed's next monetary policy meeting is scheduled for December
13-14, with CME Group's FedWatch Tool currently indicating a 75.8 percent
chance of a 50 basis point rate hike and a 24.2 percent chance of another 75
basis point rate hike. However, overall trading activity was somewhat subdued
with a lack of major U.S. economic data keeping some traders on the sidelines.
On the sectoral front, Gold stocks showed a substantial move to the upside on
the day, driving the NYSE Arca Gold Bugs Index up by 4.6 percent to its best
closing level in well over four months. The rally by gold stocks came even as
the price of the precious metal ended the day roughly flat, with gold for
December delivery inching up just $0.30 to $1,739.90 an ounce. Substantial
strength was also visible among energy stocks, which benefitted from a notable
increase by the price of crude oil.
Crude oil futures ended higher on
Tuesday after Saudi Arabia said OPEC+ was sticking with output cuts and could
take further steps to balance the market. Saudi Arabian Energy Minister Prince
Abulaziz bin Salman had on Monday denied a report that the oil cartel was
considering boosting output. He said that there was no basis for the reports
and that the OPEC+ decision on October 5 to cut production would continue to
remain until the end of 2023. Meanwhile, a weaker dollar contributed as well to
the uptick in crude oil prices. Benchmark crude oil futures for December
delivery rose $1.14 or about 1.4 percent at $81.18 a barrel on the New York
Mercantile Exchange. Brent crude for January delivery gained $1.08 or about 1.2
percent to settle at $88.53 (Provisional) a barrel on London's Intercontinental
Exchange.
Indian Rupee snapped four day of
losses to close higher against US dollar on Tuesday on the back of selling of
the American currency by exporters. Traders got support after India and the
European Union (EU) signed an agreement on cooperation in areas such as climate
modelling and quantum technologies, building on the Trade and Technology
Council launched by the two sides earlier this year. On the global front, the
pound rose on Tuesday after falling in the previous session, as the dollar
retreated following three days of gains. The greenback - typically the driver
of global currency markets - rose sharply on Monday as a jump in COVID-19 cases
in China sparked growth fears and sent investors towards the safe-haven
currency, causing the pound to drop 0.59%. Finally, the rupee ended at 81.67
(Provisional), stronger by 12 paisa from its previous close of 81.79 on Monday.
The FIIs as per Tuesday's data
were net sellers in both equity and debt segment. In equity segment, the gross
buying was of Rs 5160.40 crore against gross selling of Rs 6381.33 crore, while
in the debt segment, the gross purchase was of Rs 457.54 crore against gross
selling of Rs 3398.66 crore. Besides, in the hybrid segment, the gross buying
was of Rs 41.12 crore against gross selling of Rs 90.28 crore.
The US markets ended higher on
Tuesday as a sales forecast by Best Buy dampened concerns high inflation would
lead to a dismal holiday shopping season while a bounce in oil prices helped
lift energy shares. Asian markets are trading mostly in green on Wednesday
despite rising COVID-19 cases in mainland China leaving investors uncertain
over how much the fresh outbreaks could slow the reopening of the world's
second-largest economy. Indian markets ended their 3-day losing streak on
Tuesday and closed with gains as investors scooped up IT, metal and consumption
stocks amid a largely positive trend overseas. Today, markets are likely to
start session on positive note tracking firm global cues. Traders will be
taking encouragement as the Organisation for Economic Cooperation and
Development (OECD), the Paris-based intergovernmental body that focuses on
economic policy reports in its latest Economic Outlook said that India, with a
growth rate of 6.6 per cent in this financial year, is set to be the
second-fastest growing economy in the G20 in FY 2022-23 behind Saudi Arabia,
despite decelerating global demand and the tightening of monetary policy to
manage inflationary pressures. Also, Moody's Investors Service said the trend
of gradual fiscal consolidation remains intact for India and going forward the
country will see strong revenue performance and debt stablisation. Some support
will come as highlighting the Centre's efforts in creating employment
opportunities, Union Railway Minister Ashwini Vaishnaw said that about 16 lakh
jobs are being generated every month by the central government. Traders may
take note of the Securities and Exchange Board of India's (SEBI) November
Bulletin stating that India's holdings of US Treasury Securities increased 4.3%
on-month and 1.9% on a year-on-year basis in August to $221.2 billion. Besides,
commerce and industry minister Piyush Goyal said the proposed free trade
agreement (FTA) between India and the UK is a high priority for both the
countries and the next round of negotiations for the pact is slated to happen
next month. However, some cautiousness may come as foreign institutional
investors (FIIs) have net sold shares worth Rs 697.83 crore on November 22, as
per provisional data available on the NSE. There will be some reaction in
telecom stocks as telecom regulator's data showed that India's total mobile
subscriber base fell by 3.6 million in September, with Vodafone Idea suffering
subscriber count decline even as larger rivals Reliance Jio and Bharti Airtel
added users month-on-month. Meanwhile, Inox Green Energy Services will make its
debut on the bourses today. The issue price has been fixed at Rs 65 per share.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
18,244.20
|
18,167.31
|
18,291.46
|
BSE
Sensex
|
61,418.96
|
61,172.89
|
61,565.84
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
278.46
|
105.35
|
104.14
|
105.99
|
NTPC
|
151.98
|
167.10
|
165.46
|
168.11
|
ICICI Bank
|
112.56
|
924.30
|
920.96
|
927.06
|
Oil and Natural Gas Corporation
|
111.98
|
135.25
|
133.46
|
136.46
|
State Bank of India
|
80.48
|
599.35
|
596.76
|
601.31
|
Reliance Industries' telecom arm -- Reliance Jio Infocomm has added 7,24,790 customers in September 2022.
Tata Motors has introduced its newest addition to the iCNG family with the Tiago NRG iCNG.
L&T has purchased the entire stake held by Chiyoda Corporation in L&T-Chiyoda in accordance with the Share Purchase Agreement dated November 22, 2022.
Bharti Airtel's subsidiary -- Nxtra Data has started the construction of its new hyper-scale data centre in Kolkata.