Indian equity benchmarks ended
higher for the fourth consecutive session on Friday and gained over half a
percent, driven by favourable macroeconomic data. Most sectors contributed to
the move wherein Power, FMCG and Capital Goods were among the top gainers.
Markets made a positive start and stayed higher for whole day as the Indian
economy grew 7.6 per cent during the July-September quarter of the current
financial year 2023-24, remaining the fastest-growing major economy. India's
GDP growth for the April-June quarter grew 7.8 per cent. Some support also came
with Chief Economic Advisor V Anantha Nageswaran's statement that India's
economic growth momentum will continue in the October-December quarter and the
economy is poised to comfortably clock a 6.5 per cent growth rate for the full
fiscal underpinned by investment and consumer momentum. Besides, foreign fund
inflows also supported sentiments. Provisional data from the National Stock
Exchange showed that foreign institutional investors net bought shares worth Rs
8,147.85 crore on November 30. Markets extended gains in afternoon deals, as
India's manufacturing sector growth improved in the month of November, as
strengthening client demand and more favourable input supply boosted production
volumes. According to the report, the seasonally adjusted S&P Global India
Manufacturing Purchasing Managers' Index (PMI) grew to 56.0 in November 2023
from 55.5 in October 2023. Some solace
also came as the output of eight core industries posted a growth of 12.1
percent in October 2023 on the back of robust expansion in coal, electricity,
cement and steel. Core sector growth was a mere 0.7 percent in October 2022.
Adding to the optimism, a labour ministry said retail inflation for industrial
workers eased to 4.45 per cent in October from 4.72 per cent in September
mainly due to lower prices of certain food items. Finally, the BSE Sensex rose
492.75 points or 0.74% to 67,481.19 and the CNX Nifty was up by 134.75 points
or 0.67% to 20,267.90.
The US markets ended higher on
Friday. The strength on markets partly reflected ongoing optimism about the
outlook for interest rates following the release of a report from the Institute
for Supply Management (ISM) showing a continued contraction in U.S. manufacturing
activity in the month of November. The ISM said its manufacturing PMI came in
at 46.7 in November, unchanged from October, with a reading below 50 indicating
a contraction. Street had expected the index to inch up to 47.6. Markets saw
further upside even after Federal Reserve Chair Jerome Powell's called
speculation about interest rate cuts premature during remarks at Spelman
College. Powell acknowledged recent signs of slowing price growth but said the
Fed is committed to keeping monetary policy restrictive until officials are
confident inflation is on a path to 2 percent. On the sectoral front,
transportation stocks extended the strong upward move seen on Thursday, driving
the Dow Jones Transportation Average up by 3.0 percent to a three-month closing
high. Substantial strength also emerged among networking stocks, as reflected
by the 2.8 percent surge by the NYSE Arca Networking Index. The index reached
its best closing level in two months.
Crude oil futures ended sharply
lower for a second day on Friday amid mounting skepticism over OPEC+ output
cuts. Oil prices were weighed down by a lack of firm commitment to the 2.2
million barrel per day cut decided by the Organization of Petroleum Exporting
Countries and its allies. Saudi Arabia has committed to extending its one
million barrel cut until the end of March, and Russia has increased its export
reduction from 300,000 to 500,000 barrels. There are concerns that OPEC+ might
find it tough to follow through and reduce output, as the output cuts announced
are voluntary and not mandatory. Benchmark crude oil futures for January
delivery fell $1.89 or about 2.5 percent to settle at $74.07 a barrel on the
New York Mercantile Exchange. Brent crude for February delivery shed $1.98 or
about 2.5 percent to settle at $78.88 a barrel on London's Intercontinental
Exchange.
Indian rupee ended higher on
Friday following positive cues from equity markets and strong domestic
macroeconomic data. Investors got encouragement after India's economy grew 7.6
percent during the July-September quarter of the current financial year 2023-24
(Q2FY24) as against 6.2 per cent in the year-ago period. Besides, India's
manufacturing sector growth improved in the month of November, as strengthening
client demand and more favourable input supply boosted production volumes. On
the global front, dollar edged lower on Friday, while the euro rebounded
slightly after steep overnight losses, as traders weighed data showing
inflation was easing and looked ahead to a talk later in the day by U.S.
Federal Reserve Chair Jerome Powell. Finally, the rupee ended at 83.30
(Provisional), stronger by 7 paise from its previous close of 83.37 on
Thursday.
The FIIs as per Friday's data
were net buyers in equity segment, while they were net sellers in debt segment.
In equity segment, the gross buying was of Rs 69278.20 crore against gross selling
of Rs 59534.17 crore, while in the debt segment, the gross purchase was of Rs
2366.96 crore with gross sales of Rs 2457.58 crore. Besides, in the hybrid
segment, the gross buying was of Rs 20.55 crore against gross selling of Rs
19.74 crore.
The US markets ended higher on
Friday amid growing optimism the Federal Reserve was done raising US interest
rates and could begin to cut them next year as inflation cools. Asian markets
are trading mostly in green on Monday amid growing optimism over the outlook
for interest rates. Indian markets ended significantly higher on Friday as
strong GDP data for the September quarter as well as encouraging core sector
output figures for October raised optimism about India's growth story. Today,
markets are likely to extend their previous session's gains with gap-up opening
spurred by the Bhartiya Janta Party's (BJP) resounding win in state elections.
The BJP decisively secured victories in three of the four key states - Madhya
Pradesh, Rajasthan, and Chhattisgarh, heightening expectations for regime
continuity in 2024. Investors will keep eye on the Reserve Bank of India's
monetary policy meeting later this week. There are expectations that the
Reserve Bank is likely to maintain the status quo on the short-term interest
rate in its monetary policy review, with inflation staying in comfort zone and
economic growth moving at an accelerated pace. Some support will come with
report that after turning net sellers in the past two months, FPIs again made a
comeback in the Indian stock markets in November and pumped in Rs 9,000 crore
amid fall in US treasury bond yields and the resilience of the domestic market.
Traders will be taking encouragement as the finance ministry said GST
collections jumped 15 per cent to nearly Rs 1.68 lakh crore in November on increased
domestic activity and festive season buying. Goods and Services Tax (GST)
mop-up was over Rs 1.45 lakh crore in November 2022. Besides, the latest data
by the Reserve Bank of India (RBI) showed that India's foreign exchange
reserves increased by $2.54 billion to $597.94 billion for the week ending
November 24. However, some cautiousness may come as Crisil report stated that
States' debt will remain elevated at 31-32 per cent of their gross domestic
product amid higher capital outlays and moderate revenue growth this fiscal,
with overall borrowings likely to rise by 9 per cent to over Rs 87 lakh crore.
Meanwhile, markets regulator Sebi has extended the deadline till April 1, 2024
for the implementation of the framework for handling complaints received through
the SCORES platform for registered entities and for monitoring such grievances
by designated bodies. There will be some buzz in sugar industry stocks as
cooperative body NFCSFL said India's sugar production was down by 10.65 per
cent at 4.32 million tonne during October-November, the first two months of the
ongoing 2023-24 season. Sugar season runs from October to September. The
production stood at 4.83 million tonne in the year-ago period.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
20,267.90
|
20,203.89
|
20,311.74
|
BSE
Sensex
|
67,481.19
|
67,232.07
|
67,647.33
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Steel
|
311.92
|
130.00
|
128.60
|
130.85
|
NTPC
|
291.21
|
268.95
|
261.99
|
275.69
|
Power
Grid
|
207.19
|
210.00
|
208.81
|
211.81
|
ITC
|
193.36
|
449.15
|
440.71
|
454.26
|
ICICI
Bank
|
169.86
|
947.50
|
936.34
|
955.34
|
- Maruti Suzuki India has reported
a 3.39 per cent rise in total sales at 1,64,439 units in November 2023 as
compared to 1,59,044 units in the same month last year.
- UltraTech Cement is all set to
acquire the cement business of BK Birla Group's flagship company Kesoram
Industries in an all-share deal, with a business valuation of around Rs 7,600
crore, including debt.
- Titan Company's flagship brand --
Tanishq has opened its two stores in Texas as part of its global business
expansion strategy and to cater to the growing needs of the Indian diaspora in
the US.
- Hero MotoCorp has sold 4,91,050
units in November 2023. This translates into a growth of 25.61% over the
corresponding month of November 2022, when the company had sold 3,90,932 units.