Indian equity benchmarks eked out marginal gains to settle in the positive zone after a highly volatile trade on Wednesday, helped by buying in Power, Auto and Healthcare stocks. After making a cautious start, key gauges managed to keep their heads above water, as traders took support with report that the Ministry of Finance (FinMin) is expecting to conclude the full financial year as projected with a strong growth performance and macroeconomic stability even as it flagged risks of demand taking a hit on fuller transmission of monetary policy, high inflation, uncertain external financial flows. India has projected a gross domestic product (GDP) growth of 6.5 per cent for FY24. However, markets erased gains and traded lower in afternoon deals, amid unabated foreign fund outflows from the equity markets. Provisional data from the National Stock Exchange showed that foreign institutional investors net offloaded shares worth Rs 455.59 crore on November 21. Sentiments were pessimistic amid a private report stating that investments by Private Equity and Venture Capital (PE/VC) funds have declined to $3.4 billion for October. By value, the bets were 3 per cent lower than $3.5 billion in the year-ago period, and 19 per cent lower than $4.2 billion in September.  Some concern came as the government data showed that foreign direct investment (FDI) equity inflows in India declined 24 per cent to $20.48 billion in April-September 2023, dragged by lower inflows in computer hardware and software, telecom, auto and pharma. FDI inflows stood at $26.91 billion during the first six months of the last fiscal. But, selling proved short-lived as key indices once again entered into green terrain in final hour of trade as some optimism remained among traders with research firm ICRA's report stating that the Indian economy is likely to have grown 7 percent in the second quarter of the current financial year (Q2FY24), higher than the RBI's projections on the back of robust investment activities. Finally, the BSE Sensex rose 92.47 points or 0.14% to 66,023.24 and the CNX Nifty was up by 28.45 points or 0.14% to 19,811.85.

The US markets ended higher on Wednesday as continued optimism about the outlook for interest rates contributed to renewed buying interest following the pullback on Tuesday.  Markets also benefitted from easing concerns about the conflict in the Middle East after Hamas and Israel agreed to a Qatar-mediated pause in fighting. on the sectoral front, retail stocks saw considerable strength on the day, with the Dow Jones U.S. Retail Index climbing by 1.1 percent to its best closing level in well over a year. Notable strength was also visible among airline stocks, as reflected by the 1.0 percent gain posted by the NYSE Arca Airline Index. Networking and software stocks also saw some strength, while most of the other major sectors showed more modest moves. On the economic data front, consumer sentiment in the U.S. deteriorated by less than previously estimated in the month of November, according to revised data released by the University of Michigan. The University of Michigan said its consumer sentiment index for November was upwardly revised to 61.3 from a preliminary reading of 60.4. The upwardly revised reading is well above street estimates for 60.5 but is still down from 63.8 in October. Meanwhile, the Commerce Department released a report showing durable goods orders pulled back by much more than expected in the month of October. The Commerce Department said durable goods orders plunged by 5.4 percent in October after jumping by a downwardly revised 4.0 percent in September. Street had expected durable goods orders to tumble by 3.1 percent compared to the 4.6 percent surge that had been reported for the previous month.

Crude oil futures ended lower on Wednesday after data showed a notable increase in crude inventory in the U.S. Data released by Energy Information Administration EIA) showed crude inventories, excluding the strategic reserve, increased by 8.7 million barrels in the week ended November 17th, substantially higher than an expected increase of about 1.2 million barrels. The EIA data also showed that gasoline stockpiles surged 749,000 barrels last week, as against forecasts for a drop of about 150,000 barrels, while distillate stockpiles fell by 1.02 million barrels in the week, against expectations for a 761,000-barrel decline. Benchmark crude oil futures for January delivery dropped $0.67 or about 0.86 percent to settle at $77.10 a barrel on the New York Mercantile Exchange. Brent crude for January delivery fell $0.49 or nearly 0.59 percent to settle at $81.96 a barrel on London's Intercontinental Exchange.

Indian rupee ended lower against dollar on Wednesday tracking a strong American currency overseas. Some concern came as data from the Department for Promotion of Industry and Internal Trade (DPIIT) showed that foreign direct investment (FDI) equity inflows in India declined 24 per cent to $20.48 billion in April-September 2023. Traders overlooked report that the Ministry of Finance (FinMin) is expecting to conclude the full financial year as projected with a strong growth performance and macroeconomic stability even as it flagged risks of demand taking a hit on fuller transmission of monetary policy, high inflation, uncertain external financial flows. On the global front, dollar rebounded on Wednesday as the minutes from the Federal Reserve's last meeting hinted that interest rates would likely remain restrictive for some time, even as the rate-hike cycle appeared to be over. The Fed minutes showed the central bank would proceed carefully and that all participants judged it appropriate to maintain the current rate setting. Finally, the rupee ended at 83.32 (Provisional), weaker by 4 paise from its previous close of 83.28 on Tuesday.

The FIIs as per Wednesday's data were net sellers in equity segment, while they were net buyers in debt segment. In equity segment, the gross buying was of Rs 10829.35 crore against gross selling of Rs 10981.85 crore, while in the debt segment, the gross purchase was of Rs 1086.98 crore with gross sales of Rs 408.60 crore. Besides, in the hybrid segment, the gross buying was of Rs 11.55 crore against gross selling of Rs 12.98 crore.

The US markets ended higher on Wednesday on hopes that the Fed may be done with rate hikes after data suggested that the economy is easing but may stay strong enough to avoid recession. Asian markets are trading mixed on Thursday in a range-bound session with Japanese markets closed for a holiday. Indian markets ended volatility trade in green terrain on Wednesday amid subdued cues from global peers after the US FOMC minutes. Today, domestic markets are likely to get cautious start amid mixed global cues and the weekly F&O expiry. Foreign fund outflows likely to dent sentiments. According to provisional data from NSE, foreign institutional investors net sold shares worth Rs 306.56 crore on Wednesday. There may be some cautiousness after the latest payroll data released by the EPFO showed that reflecting a slowdown in the pace of formal job creation, new subscribers added by the Employees' Provident Fund Organisation (EPFO) declined by 10.1 per cent to 5.86 million in the first half (April-September) of FY24, from 6.52 million during the same period last year. Traders may take note of Reserve Bank of India Governor Shaktikanta Das' statement that the rupee has witnessed low volatility and orderly movements as compared to its peers. Das said household inflation expectations are becoming more anchored, but added that headline inflation is vulnerable to recurring and overlapping food price shocks. Meanwhile, Commerce and Industry Minister Piyush Goyal has said the proposed free trade agreements with the European Union and four-nation EFTA group are doable, but they should keep in mind India's concerns as the level of economic development is different. There will be some reaction in NBFCs stocks as CRISIL Ratings said that assets under management (AUM) of non-banking financial companies (NBFCs) are set to log a 14-17 percent growth next fiscal (FY24-25) on the back of continued strong credit demand across retail loan segments.

Support and Resistance: NSE (Nifty) and BSE (Sensex)

Nifty Top volumes

• Tata Motors along with its authorised distributor Inchcape has commenced the sales and service of its commercial vehicles across Thailand.
• GAIL (India) and Punjab Energy Development Agency have signed agreement to set up 10 compressed biogas projects and other new and renewable energy projects in the Punjab.
• Infosys has entered into strategic long-term collaboration with TK Elevator, one of the world's leading urban mobility companies.
• Wipro has entered into collaboration with NVIDIA to help healthcare companies accelerate adoption of generative artificial intelligence through AI-driven strategies, products, and services.