Indian equity benchmarks ended
with minor gains on Wednesday, supported by buying in Oil & Gas, Banking
and Metal stocks, and positive cues from global peers, while investors remained
cautious ahead of the U.S. Federal Reserve's November policy meeting minutes.
Key gauges made positive start and stayed in green for whole day as traders
took some support with the Organisation for Economic Cooperation and
Development's (OECD) latest Economic Outlook report stating 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. Some optimism also came after 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. Indices added gains in late afternoon deals, taking support from
commerce and industry minister Piyush Goyal's statement that 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. Some support also came 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. However, in the last leg of the trade, key gauges erased some gains
to end marginally higher as traders got anxious with provisional data available
on the NSE showed foreign institutional investors (FIIs) have net sold shares
worth Rs 697.83 crore on November 22, 2022. Finally, the BSE Sensex rose 91.62
points or 0.15% to 61,510.58 and the CNX Nifty was up by 23.05 points or 0.13%
to 18,267.25.
The US markets ended higher on
Wednesday following the release of the minutes of the Federal Reserve's early
November monetary policy meeting, which provided further evidence the central
bank is considering slowing the pace of its interest rate hikes. The minutes
said a substantial majority of meeting participants judged that a slowing in
the pace of rate hikes would likely soon be appropriate. The minutes said a
slower pace of rate hikes would better allow the Fed to assess progress toward
its goals of maximum employment and price stability. However, a few other
participates suggested it could be advantageous to wait until the rates were
more clearly in restrictive territory and there were more concrete signs that
inflation pressures were receding significantly before slowing the pace of rate
hikes. The minutes also said participants agreed further interest rate
increases would be appropriate in order to attain a sufficiently restrictive
stance to bring inflation down over time. Various participants also indicated
the ultimate level of the federal funds rate that would be necessary to achieve
the Fed's goals was somewhat higher than they had previously expected. On the
sectoral front, tobacco stocks showed a substantial move to the upside on the
day, driving the NYSE Arca Tobacco Index up by 2.9 percent to a three-month
closing high. Considerable strength was also visible among computer hardware
stocks, as reflected by the 1.7 percent gain posted by the NYSE Arca Computer
Hardware Index.
Crude oil futures ended deeply in
red on Wednesday on reports that the Group of Seven nations has considered a
price cap on Russian oil. According to reports, G7 nations are considering a
price cap of $65-$70 a barrel on Russian seaborne oil. However, Data released
by U.S. Energy Information Administration (EIA) showed crude inventories
dropped by 3.7 million barrels in the week ended November 18th, larger than an
expected drop of about 1.1 million barrels. Benchmark crude oil futures for
December delivery fell $3.01 or about 3.7 percent at $77.94 a barrel on the New
York Mercantile Exchange. Brent crude for January delivery dropped $3.15 or
about 3.56 percent to settle at $85.21 (Provisional) a barrel on London's
Intercontinental Exchange.
Indian rupee tumbled against
dollar on Wednesday, on account of sustained dollar demand from importers and
banks. Traders failed to take support from the Organisation for Economic
Cooperation and Development's (OECD) latest report stating that India, with a
growth rate of 6.6 per cent in this financial year, is among the fastest
growing economies in Asia amid a global slowdown triggered by a massive energy
shock due to the ongoing Russia-Ukraine conflict. On the global front, sterling
ticked up on Wednesday, rising for a second day against a faltering U.S. dollar
after preliminary British economic activity data beat expectations, though it
still showed contraction was underway. Flash purchasing manager index (PMI)
data on Wednesday showed British economic activity sticking near 21-month lows,
adding to signs of recession as orders sank and employment growth slowed. Finally,
the rupee ended at 81.85 (Provisional), weaker by 18 paisa from its previous
close of 81.67 on Tuesday.
The FIIs as per Wednesday's data
were net sellers in equity segment, while net buyers in debt segment. In equity
segment, the gross buying was of Rs 7399.25 crore against gross selling of Rs
7636.58 crore, while in the debt segment, the gross purchase was of Rs 459.16
crore against gross selling of Rs 295.38 crore. Besides, in the hybrid segment,
the gross buying was of Rs 7.02 crore against gross selling of Rs 7.16 crore.
The US markets ended higher on
Wednesday with solid gains after the Federal Reserve's November meeting minutes
showed interest rate hikes may slow soon. Asian markets are trading in green on
Thursday following overnight gains on Wall Street. Indian markets pared early
gains to finish slightly higher on Wednesday as rise in banking, metals, and
oil and gas stocks were offset by decline in information technology and FMCG
stocks. Today, markets are likely to start F&O expiry session in green tracking
firm global cues. Traders will be getting encouragement as Revenue Secretary
Tarun Bajaj said India's tax collection will exceed the budget estimate by
nearly Rs 4 lakh crore in the current fiscal on the back of buoyant income tax,
customs duty and GST mop-up. Some support will come as the S&P Global
Market Intelligence projected India's real gross domestic product (GDP) growth
to average 6.3 per cent annually between financial years 2021 and 2030,
enabling it to overtake Japan and Germany to become the world's third-largest
economy in nominal US dollar terms. Traders may take note of report that
India's G-20 sherpa Amitabh Kant said financial regulators were designed in the
socialist era and there is a need for a change in the mindset of many regulators
to aid economic growth. However, there may be some cautiousness as the data of
the Department for Promotion of Industry and Internal Trade (DPIIT) showed that
Foreign Direct Investment (FDI) equity inflows into India contracted by 14 per
cent to USD 26.9 billion during the April-September this fiscal. The inflows
had stood at USD 31.15 billion during the corresponding period of the previous
year. Also, foreign fund outflows likely to dent sentiments in markets. Foreign
institutional investors (FIIs) net sold shares worth Rs 789.86 crore on 23
November, according to the provisional data available on the NSE. There will be
some buzz in the telecom stocks as telecom regulator Trai in a report said
telecom service providers' adjusted gross revenue grew 17.91 per cent on a
year-over-year basis to Rs 60,530 crore in April-June 2022 with Jio leading in
terms of revenue share. Sugar stocks will be in focus as the Indian Sugar Mills
Association (ISMA) said India is likely to extend the limit of sugar exports by
2-4 million tonnes in the 2022-23 season. The move will leave total exports at
8-10 million tonnes and below last year's level. Meanwhile, Keystone Realtors,
the real estate development company under Rustomjee brand, will debut on the
BSE and NSE.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
18,267.25
|
18,233.70
|
18,313.10
|
BSE
Sensex
|
61,510.58
|
61,375.22
|
61,713.43
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
228.09
|
105.40
|
104.90
|
105.95
|
State Bank of India
|
124.36
|
607.10
|
602.20
|
610.80
|
NTPC
|
120.05
|
167.80
|
166.61
|
168.61
|
ICICI Bank
|
109.60
|
926.50
|
922.85
|
931.00
|
Power Grid Corporation of India
|
101.33
|
215.40
|
213.50
|
218.05
|
Tata Motors has launched the new Tigor.ev sedan with an extended range of 315 km (ARAI certified) and host of premium & technology features.
NTPC has begun dispatching coal through rakes from its Talaipalli mines to Lara Super Thermal Power Project in Chhattisgarh.
S&P Global Ratings has upped its credit rating on Axis Bank with a stable outlook on expectations that the bank will maintain good asset quality over the next two years.
Bajaj Auto has launched the all-new Pulsar P150 in India.