Extending gains for the second straight day, Indian equity benchmarks staged a smart rally and ended with gains of over a percent on Wednesday, driven by foreign fund inflows along with buying in market heavyweights Axis Bank, Mahindra & Mahindra and Wipro. After the gap-up start, markets moved from strength to strength and settled around the day's high as sentiments got support with S&P Global Ratings' report stating that India's GDP growth rate will rise to 7 per cent by 2026 compared to 4.6 per cent for China. It expects Asia-Pacific's growth engine to shift from China to South and Southeast Asia. Sentiments remained up-beat with rating agency ICRA's report stating that the credit metrics of India Inc. are likely to show slight sequential improvement in Q3 FY2024, with interest coverage increasing to 4.5-5.0 times in Q3 FY2024 from 4.5 times in Q2 FY2024. The credit metrics would result from improved earnings of Corporate India, on the back of continuing, albeit moderating tailwinds from commodity prices and seasonally strong demand during the recently concluded festive season.  Key gauges extended gains in late afternoon deals, as traders got solace amid a private report stating that the market value of companies listed on the BSE crossed a record $4 trillion for the first time riding on the sustained rally in Indian equities. As of November 29, the total market cap (MCap) of all BSE-listed companies hit $4.01 trillion or over Rs 333 trillion, climbing over $600 billion since the beginning of the year. Some optimism also came as Engineering Exports Promotion Council (EEPC) India stated that Indian engineering exports to 18 key markets recorded positive growth in October, 2023.  Countries which registered positive growth in exports during October include the UK, US and UAE among others. However, it said that China, Italy, Singapore and Indonesia were among the countries that saw a decline in engineering shipments during the month. Finally, the BSE Sensex rose 727.71 points or 1.10% to 66,901.91 and the CNX Nifty was up by 206.90 points or 1.04% to 20,096.60.

The US markets ended mostly in red on Wednesday as traders looked ahead to the release of key inflation readings on Thursday. The Commerce Department's report on personal income and spending includes readings on inflation said to be preferred by the Fed and could impact on the outlook for interest rates. However, Markets saw early strength amid ongoing optimism about the outlook for interest rates despite conflicting remarks by Federal Reserve officials. While Fed Governor Christopher Waller said Tuesday he is increasingly confident that policy is currently well positioned, Fed Governor Michelle W. Bowman said she expects further rate hikes will be needed. Traders seem to be focusing more on the comments that reinforce expectations the Fed will leave policy unchanged until cutting rates beginning in mid-2024. Positive sentiment also generated in reaction to a surge by shares of General Motors (GM), with the auto giant spiking by 9.4 percent after announcing $10 billion stock buyback and increasing its dividend. On the sectorial front, Computer hardware stocks saw substantial strength on the day, driving the NYSE Arca Computer Hardware Index up by 2.9 percent to a record closing high. Data infrastructure company NetApp (NTAP) led the sector higher after reporting better than expected fiscal second quarter results and raising its fiscal third quarter and full-year guidance. Significant strength was also visible among banking stocks, as reflected by the 2.0 percent surge by the KBW Bank Index. The index reached its best closing level in over three months. Telecom, brokerage and semiconductor stocks also saw notable strength, while tobacco stocks and energy stocks moved to the downside.

Crude oil futures ended sharply higher on Wednesday as traders looked ahead to Thursday's meeting of the Organization of the Petroleum Exporting Countries and their allies. The group, known as OPEC+, is expected to extend or deepen supply cuts. Future, news of supply disruption caused by a storm in the Black Sea also contributed to the extended surge in oil prices. Benchmark crude oil futures for January delivery rose $1.45 or about 1.9 percent to settle at $77.86 a barrel on the New York Mercantile Exchange. Brent crude for January delivery gained $1.42 or about 1.7 percent to settle at $ 83.10 a barrel on London's Intercontinental Exchange.

Indian Rupee ended higher against the US dollar on Wednesday boosted by robust buying in equity markets and inflow of foreign funds. Sentiments were positive as S&P Global Ratings in its report titled 'China Slows India Grows' has said India's GDP growth rate will rise to 7 per cent by 2026 compared to 4.6 per cent for China. It expects Asia-Pacific's growth engine to shift from China to South and Southeast Asia. Meanwhile, the rating agency ICRA's report stated that the credit metrics of India Inc. are likely to show slight sequential improvement in Q3 FY2024, with interest coverage increasing to 4.5-5.0 times in Q3 FY2024 from 4.5 times in Q2 FY2024. On the global front, U.S. dollar slid across the board to hit a more than three-month low against its major peers on Wednesday, while the New Zealand dollar surged after its central bank suggested that more rate hikes could be in the offing. Finally, the rupee ended at 83.32 (Provisional), stronger by 2 paise from its previous close of 83.34 on Tuesday.

The FIIs as per Wednesday's data were net buyers in both equity and debt segments. In equity segment, the gross buying was of Rs 15558.61 crore against gross selling of Rs 13772.14 crore, while in the debt segment, the gross purchase was of Rs 1327.72 crore with gross sales of Rs 887.87 crore. Besides, in the hybrid segment, the gross buying was of Rs 7.35 crore against gross selling of Rs 10.62 crore.

The US markets ended mostly in red on Wednesday as traders looked ahead to the release of key inflation readings on Thursday. Asian markets are trading mixed in early deals on Thursday as manufacturing activity in China contracted further. Indian equity markets ended higher with gains of over one percent on Wednesday as S&P Global Ratings in its report titled China Slows India Grows has said India's GDP growth rate will rise to 7 per cent by 2026 compared to 4.6 per cent for China. Today, markets are likely to make cautious start amid mixed cues from global markets. Traders will be eyeing on the Gross Domestic Product (GDP) data for Q2 to be out later in the day for more cues. Trading likely to be volatile in day's session amid the fresh spike in crude oil prices and the monthly futures & options expiry later in the day. There may be some cautiousness in the markets as the exit polls of five state elections be out later in the day. However, traders may get some support as Economic Affairs Secretary Ajay Seth said Indian economy is showing momentum and the growth rate in the second quarter (July-September) is likely to be good. The economy grew at 7.8 per cent in the first quarter (April-June) of the current financial year. He further said that the fiscal deficit target of 5.9 per cent for the current financial year was feasible despite additional outgo towards food subsidy. Further, foreign fund inflows likely to support sentiments. Provisional data from the National Stock Exchange showed that foreign institutional investors net bought shares worth Rs 71.91 crore on November 29. Traders take a note of report that India is not expected to be impacted by a potential cut in oil production by the Opec+ countries, given the existing lower global industrial demand outlook and continuing discounts on Russian crude. Meanwhile, coal and Mines Minister Pralhad Joshi launched the auction of 20 critical minerals worth Rs 45,000 crore. Of the 20 minerals put on sale, two are lithium blocks.

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

Nifty Top volumes

•  UltraTech Cement has acquired a 0.54 mtpa cement grinding assets of Burnpur Cement, located at Patratu in Jharkhand.
• Infosys' wholly-owned subsidiary -- EdgeVerve Systems' unit Infosys Finacle has been selected by Bank of Commerce (BankCom) for its core banking transformation.
•  JSW Steel has paid about Rs 2.79 lakh that was levied as penalty by the Reserve Bank of India (RBI) on JSW Ispat Special Products (JISPL).
•  Titan Company has completed the acquisition of 91,90,327 equity shares of CaratLane and following the acquisition, the shareholding of the Company in CaratLane increased from 71.09% to 98.28% on a fully diluted basis.